Domestic markets rebounded from lows in the last hour of trade to end flat with negative bias led by profit booking in IT and Auto stocks. Sensex closed at 58,250, down 29 points and Nifty settled just 8.6 points lower at 17,354 level. India VIX closed 3.25% lower. Kotak Bank, Grasim, Power Grid, and BPCL were among theTop Nifty gainers, while Divis Lab, Nestle, Wipro, and Maruti were laggards.
Stock Market Summary
Equity benchmarks indices opened on a bouncy note on Wednesday. Sensex and Nifty witnessed a volatile session and closed on a flat note with a tiny correction. Nifty slipped 8.60 points or 0.05% at 17353.50 amid tepid cues from the global market and heavy weakness in Nifty IT stocks.
Sensex touched a high of 58,372.94 and a low of 57,924.48 to finally settled at 58,250.26 with the loss of 29.22 points or 0.05%. The broader market outperformed the benchmarks. Mid Cap Index was down 0.96% and while the small-cap index rose 0.55%.
Among the sectors, Nifty Bank, private bank, PSU bank, and financial services indices performed excellently on the Wednesday session. Bank Nifty index was gained 299.40 points or 0.82% and closed at 36768.20.On the other hand Nifty IT (down 0.78%), Nifty Media (down 0.64%), Nifty Auto (down 0.52%) and Nifty Pharma (down 0.26%).
Grasim (up 1.64%), BPCL (up 1.63%) and Coal India (up 1.56%) were Top gainers.
Wipro (down 1.68%), SBILIFE (down 1.68) and Hindalco (down 1.42%) were Top losers.
Technical View on Nifty and Bank Nifty
Nifty witnessed some consolidation move, after the continuous upside rally, it settled almost flat around 17353.
Though the intraday charts are showing some consolidation the shorter term charts are still maintaining their bullish trend.
On the daily chart, it is still maintaining its levels above its 5, 10, and 20 days EMA, which indicates a bullish trend for the short term.
Hourly chart has developed some negative RSI divergence which is indicating some shorter-term correction.
Support awaits at 17250. It is followed by 17200, Further down, 17150 will act as downside support.
Resistance is at 17440, which has capped the index on its way up. Above this index may move towards 17500—17550 levels.
Nifty Open Interest Put-Call ratio is around 1.17 levels, maximum call open interest is around 17500 levels, whereas maximum Put Open Interest is around 17300 levels indicates a range of trading in the upcoming session.
Nifty Futures Strategy for the day
Resistance at 17440 and Support at 17250.
Strategy – Either buy above 17440 for the targets of 17500—17550 or Sell below 17250 levels for the downside target of 17150.
Yesterday in our blog we have suggested sell on rise in financial benchmark index around 37000 levels, those who have followed must have minted money in it.
Bank Nifty index reversed from its crucial support level of 36600 and closed around 36941 levels.
The index showed some lackluster movement during the day and hovered around 200 periods EMA on the daily chart.
KOTAK BANK was the major outperformer up around 3.21%, followed by FEDERAL BANK, BOB moved around 1.90% and 1.59%.
Now, Support awaits at 36600. It is followed by 36250, Further down, 35900 will act as downside support.
Resistance is at 37000, which has capped the index on its way up. Above this levels index may move towards 37300.
Bank Nifty Open Interest Put-Call ratio is around 0.94 levels, maximum call open interest is around 37000 levels, whereas maximum Put Open Interest is around 36500 levels indicates a range of trading in the upcoming session.
Nifty Bank Futures strategy for the day
Resistance at 37000 and Support at 36500
Either Buy above 37000 for the targets of 37300—37500 or Sell below 36500 levels for the downside target of 35900.
Top Stocks Recommendations (09th Sep 2021)
PRAJ INDUSTRIES (CASH)
The stock has taken support at strong levels and we will expect a bounce from current levels in the stock.
Strategy – Traders can enter above 350 for the upside move till 370 and then to 380 levels in days to come. Support and stop loss below 328.
BAJAJ FINANCE (FUTURES)
BAJFINANCE (SEP) contract formed falling wedge formation. Consolidate in a downward sloping narrow range indicates that buyers accumulate stock for the upside move. This bullish pattern will be active after the price break the level of 7530, then it can touch the upside level of 7750 in upcoming days.
Strategy: Buy BAJFINANCE(SEP) contract above 7530 levels for the first target of 7630 level & further target of 7730 levels with maintaining the stop-loss of 7410.
Traders can trade safely in Nifty, Bank Nifty and Stock recommendations with levels only. More will update during market hours.
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