Indian Stock Market witnessed a positive day of trade as across the board short-covering weighed in. Nifty 50 index has regained an upside momentum, Banking and metal stocks led the rally. If Nifty index hold above 14500 –14700 the trend will turn bullish and we can scale up to higher to achieve 15,000. Strong support awaits at 14300 for Nifty.
Stock Market Summary
Metal stocks were in the fast lane On Monday’s trading session amid base metal prices globally witnessing an upside momentum as investors found comfort that world economic recovery was well on track which bolstered risk appetite. SAIL surges 8%, Vedanta and JSW Steel were in the fast lane. Nifty IT index made subdued gains. The IT index was trading higher with Mphasis leading the gains on plans of acquisition by Blackstone. HCL Tech dragged the most on the decline in net profit in quarterly earnings. Nifty Auto Index was holding gains. The index was trading higher with Eicher Motors lifting the performance. Ashok Leyland, Bajaj Auto, and TVS Motor Company were also bullish. Nifty Pharma trades flat as heavyweights Lupin, Cipla and Auro Pharma were among top laggards. Alkem and Divis Lab were among the gainers.
The 30-share BSE Sensex closed at 4386.51 up around 508.06 points, or 1.06%, over the previous day. The Nifty ended up around 143.60 points or 1.00% to close at 14485.00. Bank Nifty closed at 32275.20, closed with a gain of 552.90 points. Indian Volatility Index surged +3.55% percent to close at 23.50. Market breadth ended in favor of advances. Around 1239 stocks on the NSE closed with gain, while 660 stocks ended with a loss, and 394 shares are unchanged.
Technical View of Stock Market
Nifty 50 formed a bullish candle on the daily chart. The Relative Strength Index (RSI) is edging lower but holds comfortably above the midline, implying that there is room to rise for the Nifty index.
Index continued to hold above 14,400 to witness an up move towards 14,600—14,700 zone. However, if buying interest evaporates the price could fall back towards the support zone of 14,300—14,150 zone.
According to Open Interest data, the maximum CE open interest stand at 14600 followed by 14700 and the maximum PE at 14300 indicates a range of trading in the upcoming session. Valuation wise maximum CE & PE stand at 14500 & 14300 is a crucial level for the index.
Nifty Future strategy for the day
Resistance comes at 14600 and support lays down at 14300.
Strategy – Fresh sell below 14300 for the target of 14200—14150 or else it could test its resistance level of 14600—14700 on the upside.
Bank Nifty outperformed the Nifty index by 0.65% with both the indices closing ~1.65% and 1% higher respectively. Banking stocks outperformed. Bank Nifty index gained and closed around 32275.20 (Spot level). Technically buying interest may come above 32600 levels. Fresh selling can only be done below 31800 levels for the downside target of 31000.
Nifty Bank Futures strategy for the day
Resistance at 32600 and Support at 31800
Either buy above 32600 for the target of 33000—33500 or sell below 31800 for the downside target of 31000.
Top Stocks Recommendations for Today (27th April 2021)
HINDUSTAN ZINC (Cash)
The stock looks bullish on the daily chart and ready for another rally. Traders can buy around 300 for the upside target of 320 and to 330 levels in the days to come.
Support and stop loss remains at 290 on a closing basis.
AMBUJA CEMENT (Futures)
The stock has formed a bullish candle on the daily chart. Traders can go for buying around 300 for an upside move till 310 and then to 315 levels in days to come.
Support and stop loss below 290 on a closing basis. Trade with the levels only.
Traders can trade safely in above mentioned stocks and index with levels only. To get real time stock market news, updates and recommendations on your WhatsApp, kindly click on the banner given below.
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