Financial stocks continued its sell-off and benchmark indices ended with a large red candle indicating a bear’s dominance in the upcoming session. Despite a bear bias, PCR in Nifty stands at 10500 indicates an intraday buying zone. Any panic around 10500 may be an intraday buy opportunity.
Indian equity markets have their biggest single-day drop since early-June, witnessed profit-booking which dragged Nifty below 10650 levels. The BSE Sensex ended 1.8% lower to close at 36,033 while the NSE Nifty 50 index managed to hold on to the 10,600 marks and ending 1.79% lower at 10,609. Only 3 out of the 50 stocks ended in the green. Market breadth remained in favor of the sellers through the session. Around 820 shares have advanced, 1829 shares declined, and 116 shares are unchanged.
Among the sectors except for Pharma, all major indices ended in the red. Pharma was the only outperformer ending at 0.5% higher. Sell-off in banking stocks continued. The Nifty Bank ended lower for the third straight day, ending 3% lower for its longest losing streak in two months while Metals and Auto stocks were the other sectoral laggards, ending lower by 2.5% each. I.T. and realty index fell over 1% respectively on the Tuesday trading session.
Technical View of Index
Nifty formed a strong bearish candle which indicates Bears likely to dominate the market ahead. Every high would be a selling opportunity below 10700. PCR stands at 10500 indicates a trading range of 200 points from 10500-10700 in upcoming trading sessions. Any panic around 10500 will be a buying opportunity for the day. Trading below 10500 may extend its downside further for 10400-10350.
Nifty According to Open Interest Data, the Maximum Call open interest stands at 10800 and Put at 10500 followed by 10600 suggests a narrow trading range for the index.
Valuation wise maximum Call & Put stand at 10700 indicate crucial levels for index. PCR stands at 10500 validate it as an immediate support level.
Nifty future strategy for the day
Support lays down at 10550, while upside resistance comes at 10660
Either side breakout will give 70-100 in the respective direction.
On the other hand, the financial benchmark index Bank Nifty formed a third bearish candle. The financial index performed worst for the day.
Nifty Bank Future strategy for the day
Support at 21200 and Resistance at 21600
Either side of the breakout will give the next 300-400 points move in respective direction.
Nifty Metal entered into bears grip
After a strong positive move, Nifty Metals exactly fall from the 78.3% of retracement from the previous rally. Weak Chinese data also support the negative move in this sector. We will expect to show more weakness from current levels. Nifty Metal was unable to breach its resistance level of 2125 and fall sharply. We will expect it to touch 2000 and then to 1950 levels in days to come. Hurdle around 2125, break and sustain above 2125 will see a fresh breakout for the upside move in this sector.
Stocks like Jindal Steel and NMDC looks negative on the charts. Traders can go short or rise in these stocks for the day.
Top Stock Recommendations for today (15th July 2020)
DCM SHRIRAM (Cash)
The stock formed a large bullish candle on the daily chart. Traders can buy around 318-315 for the upside move till 340 and then to 350 levels in days to come.
Support and stop loss below 300.
TATA CHEM (Future)
Catch Tata Chemicals around 302 as the stock is on the verge of a reversal.
Traders can buy around 302 with a stop loss below 294 on a closing basis for an upside target of 312—315 levels in days to come.
Traders can trade safely in index with levels only. More will update during market hours.