17th March 2020
Indian Stock Market again faced the heat of global meltdown.
Yesterday we had witnessed the continuation of sell-off in the stock market. With VIX at a record high, Nifty plunged 230 points, Sensex lost more than 800 points while Bank Nifty lost almost 1000 points in day’s trade.
Nifty, after consolidating above 9000 levels for the majority of the trading session, price turned and broke downside levels in the Indian stock market. Finally, the Indian stock market ended lower on the second consecutive day of this week in the last hour sell-off yesterday. The BSE Sensex fell 2.58 percent to close at 30,579. The NSE Nifty 50 index closes at 8,966, down by 2.51 percent. The index closed below the psychological level of 9000.
Market breadth was in favor of sellers. Around 765 shares have advanced, 1624 shares declined, and 152 shares are unchanged. All the sectors ended lower except FMCG and Pharma. Major fall is seen in Nifty Media and Nifty Bank of around 5.95% and 4.1% respectively on Tuesday trading session.
Technically, Price has been consolidating in a range of 9600 on the upside to 9000 on the downside. Either side of the breakout will give a move of the next 400-600 points in the respective direction.
According to Open Interest Data, the maximum Call open interest stand at 9500 and Put at 8100 suggests a broad trading range for the index. Valuation wise maximum Call & Put stands at 9000 suggests crucial level for index, Writing in call put option indicate indecisive ahead,
Nifty still has a bear bias. So, traders can try to get an opportunity to sell Nifty future on the rise around 9100.
Nifty (future) strategy for today.
Nifty has support around 8850 levels while resistance seems around 9600 levels.
Trading below 8850 will take it to 8700-8500, else it may test it’s resistance level again. A sharp recovery is likely to happen only if Nifty sustained above 9600 levels.
Bank Nifty Levels
On the other hand, Bank Nifty has support at around 21450 and resistance at around 23500. Break and close below 21450 will see more downside panic till 20800-19000 levels in days to come else it could test its resistance level of 23500 again.
Bank Nifty (future) strategy for the day.
Bank Nifty support is at around 21450 levels. One can go short below these levels for a gain of 500-600 points. On the other hand above 23500 levels, we may see some relief rally in Bank Nifty.
Concentrate on the below stock for today…
RBL Bank Ltd. (NSE: RBLBANK)
Currently, the stock is trading in a negative trend. Technically we will expect a downside rally in this stock below 154 levels on the chart.
Traders can sell below 154 levels with a stop loss above 170 levels on a closing basis for the target of 138—135 levels in the coming days.
Jubilant Foodworks Ltd. (NSE: JUBLFOOD)
Stock is trading in a negative trend and looks weaker below 1240 levels on the chart. We will expect more downside movement in it.
Traders can sell JUBLFOOD below 1240 levels with a stop loss above 1300 levels on a closing basis for the target of 1150 levels in days to come.
Read our yesterday Index & Stock update here.