Yesterday Sensex made all time high of 50000. Later on, Benchmark indices price fizzled out from the day’s high in the last hours of the session. Now, bulls need to surpass 14766 on a close basis to hold the grip on the Dalal Street. Technically above 14766, Nifty may continue its rally for the target of 14980, else it may test 14400-14200 on the downside.
Sensex touched record high levels of 50,000 but profit booking was seen from the higher levels. Nifty 50 settled below 14600. Bank Nifty sheds almost 500 points, banking stocks were in red, tracking the selloff of benchmarks during the second half of Thursday’s session. Nifty PSU Bank plunged by 3.64%. While Nifty Private Bank slipped by almost 1%.
Metal stocks were under pressure as investors booked profit in major stocks. A broad-based selloff was recorded across Nifty Metal. Nifty Realty was down 2.56%. BSE Midcap and Small cap indices lost 0.88 percent and 0.68 percent, respectively.
The 30-share BSE Sensex was down 167.36 points, or -0.34%, to close at 49624.76. The Nifty ended up down 54.30 points or -0.37% to close at 14590.40. Bank Nifty closed at 32186.90 with a loss of 356.80 points. Indian Volatility Index surged 2.92 percent to close at 22.18. Market breadth ended in favor of bears. Around 621 stocks on the NSE closed with a gain, while 1296 stocks ended with a loss, and 294 shares are unchanged.
Technical View on Nifty and Bank Nifty
The index marked a record high for the consecutive second day but failed to give close above 14666 marks. Technically support lays down at 14400 and resistance at 14766. Below 14400 marks price may retrace for 14200 levels, else may test 14766. Now, fresh buying would be seen either around 14200(Spot) or above 14766(Spot) marks.
Nifty Trend – As per technical, resistance laid down at 14766 and support around 14200. Every low is a buying opportunity around 14400 for an upside target of 14666-14766. Holding below 14400 may slide the price to 14200-13980 on the downside.
According to Open Interest Data, the Maximum Call open interest stand at 15000 followed by 14700 and the maximum put at 14000 followed by 14600 indicates a narrow range of trading in the upcoming session.
Valuation wise maximum Call & Put stand at 14600 indicates a crucial level for the index. PCR shifted its support to 14500 levels.
Nifty futures strategy for the day
Resistance comes at 14766 and Support lays down at 14500.
Strategy – Sell around 14620 with a stop loss of 14766 for the target of 14500-14400.
Fresh buying would be been close above 14766.
Bank Nifty slipped from the double top formation. Index price lost 272.60 points to close at 32271.10. The index price has taken a resistance of 32900 throughout the session. Technically, below 32900 Index may correct further for 31800 marks.
Bank Nifty Trend – Technically, above 32900, the price is heading towards 33300. Else may test 32000-31800 on the downside.
Nifty Bank Futures strategy for the day
Resistance at 32900 and Support at 31650.
Strategy – Sell around 32600 with the stop loss of 32900 for the target of 32200-31800.
Fresh buying would be been close above 32900.
Today’s Top Recommendation (22nd Jan 2021)
APL Apollo Tubes Ltd. (Cash)
Stock is ready for the trendline breakout on the daily chart. Traders can buy above 970 for an upside move till 1020 and then to 1050 levels for the day.
Support and stop loss below 925.
Grab Reliance Industries (Futures) around 2075 for the upside target of 2130 and then to 2150 in the days to come.
Support and stop-loss remain at 2050.
Traders can trade safely with levels only. More will update during market hours. To get live market news and updates of Sensex, Nifty and Bank Nifty, join our FREE WhatsApp broadcast. (Click on the banner given below)
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