Indian Stock Market witnessed a negative day of trade on Tuesday, however, a buying momentum was seen in the broader markets during the second half of the day. Nifty 50 seen a marginal unwinding of long positions during the day. Bank Nifty unable to breach its resistance level of 33300. Nifty PSE index was among the top outperformers, stocks like Gail, NTPC, & BHEL witnessed a big surge.
Stock Market Summary
Equity indices traded in a range with losses in mid-afternoon trade. Nifty50 continued trading above the 14,800 marks. Nifty50 climbed 3.08% in the past four consecutive sessions.
S&P BSE Sensex, declined 340.60 points or 0.69% to 49,161.81.Nifty50 index fell 91.60 points or 0.61% at 14,836.10. Bank Nifty down 270.20 or 0.82%.
The broader market traded higher. S&P BSE Mid-Cap index rose 0.93% while the S&P BSE Small-Cap index added 0.82%.
The Nifty Pharma index slipped 0.46% to 14,067.35. Lupin (down 1.84%), Aurobindo Pharma (down 1.90%), Torrent Pharmaceuticals (down 1.84%), Divi’s Laboratories (down 1.60%) and Cipla (down 0.98%) were top losers of pharma space.
Kotak AMC Pharma Fund finished as the top performer of the month, returning 13.39 percent, according to data provided. Sun Pharma 1.42 %, Dr. Reddy’s Labs, Cipla, Cadila Healthcare 0.94 % and Aurobindo Pharma were the top five holdings in its portfolio.
Stocks to keep an eye on: Today Apollo Tyres, Asian Paints, Happiest Mind, Jindal Steel, Lupin and Pidilite Industries will announce their quarterly corporate results. So traders are advised to trade safely in above mentioned stocks with levels only. Technical view on all above stocks we will publish at 8.30 AM in the morning on our blog so do visit the same.
Our yesterday pick Asian Paints very well touched our buying zone of 2535–2525 (made low of 2521.30). Stock closed near to it’s day high at 2561.70. If traded hold and follow our trade plan given yesterday. Fresh stock pick will provide during market hours to our WhatsApp followers. To join FREE WhatsApp list (Click here!)
Technical View on Nifty 50 and Bank Nifty
Nifty 50 marks a limited recovery, following its bounce-off intraday low of 14770. The index opened around 200 points gap down and immediately move towards 14900 levels, a buying interest was seen at lower levels. Nifty 50 closed around 14850 forming a green candle with a large upper wick on the daily charts. The next immediate support came out at 14750 levels followed by 14600. Upside resistance is at around 14950—15055. Relative Strength Index (RSI) is below 60 indicated some selling pressure from the upside.
On the options front, maximum CE open interest came out in the region of 15000 followed by 15100 and maximum PE open interest stands in the region of 14600 indicates a range of trading in the upcoming session. Valuation wise maximum CE and PE stands at 14800 which is crucial for the index.
Nifty Futures strategy for the day
Resistance comes at 14950 and support lays down at 14700.
Strategy – Fresh sell below 14700 for the target of 14600–14550 or else it could test its resistance level of 14950–15100 on the upside.
Bank Nifty witnessed selling pressure around 33300–33200 levels. Zooming into the intraday charts index flirts with 200-EMA and closes below it around 32800 dives almost 300 points. Banking stocks traded lower as inflation risks fuel sentiments on a broader market. At the moment, a breach of 32500 would target 32000 en route to 31200. On the other hand, the next hurdle is located at 32300 followed by 32800.
Nifty Bank Futures strategy for the day
Resistance at 33300 and Support at 32500.
Strategy – Either buy above 33500 for the target of 34000—34400 or Sell below 32600 for the downside target of 31800.
Top Stocks Recommendations (12th May 2021)
Techno Electric (Cash)
The stock has given multiple resistance breakouts and formed a big green candle supported by volume. Traders are advised to go for buying above 330 levels for the upside target of 350 and then to 370 levels in the days to come.
Support and stop-loss remain at 300 levels on a closing basis.
Deepak Nitrate (Futures)
After a sharp fall, the stock formed a bullish pattern on the lower levels. Traders can buy around 1815 for upside move till 1920 and then to 1950 levels in days to come.
Support and stop loss below 1720. Trade with the levels only.
Traders can trade safely in Nifty 50, Bank Nifty and given Stock recommendations with levels only. To get real time market news, updates and recommendations on your WhatsApp. Click on the banner given below.
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