Last week Stock Market has witnessed selling pressure from upper levels. Indian Benchmark Indices ended marginally higher with Doji formation on charts. Technically below 14350, the index price may continue its sell-off else it may test 14760 marks on the upside. Bank Nifty next move will mainly depend on upcoming banks’ earnings. Technically above 31900, Bank Nifty may continue its current rally, else may correct for 31200 marks on the downside.
Last week, Indian indices faced selling pressure from the higher levels and consolidated for most of the session of the week ended on 15th January.
Now, what ahead???
Dalal Street would be mainly influenced by the upcoming Q321 earnings. Factors, which may add volatility in the Indian Stock Market.
Events that may add volatility, Need to be watched
*Q3 2021 earnings-
20/01/2021- Bajaj Finance, Bajaj Fin Serv, Federal Bank
21/01/2021- Asian Paints, Biocon, Jindal Steel, Mphasis
22/01/2021- HDFC Life, JSW Steel, SBI Life Insurance, Yes Bank
*18th January- US Holiday
*20th January- GBP, CPI (YoY) (Dec)
*22nd January FX Reserved IND
*FII and DII participation
Technical View Of Stock Market
On a weekly scale, Nifty 50 price formed Doji formation which indicates the next move is indecisive on Dalal Street. Index price ended marginally higher 0.60 percent on a weekly scale. On a daily scale, the price ended in red formation on Friday resulted in profit booking. Yet, the sentiment is bullish above 14350 for upcoming sessions. Price is likely to continue its north-east directional move for 14760 targets. Contrary, the Sell-off can’t be ruled out below 14350 for the target of 14200-13800.
Price action and the advance-decline ratio was in favor of bears.
Nifty Implied Volatility index plunged for 16.33% to close at 24.01 marks. The gain in VIX gives favor to bears.
PCR shifted its support to 14400
Trend: Support lays down at 14350; Closing below 14350 may extend its down move to 14000-13800. Above 14350 every dip is a buying opportunity for the target of 14760.
According to Open Interest Data, Maximum Call open interest stand at 14600 followed by 15000 and Put at 1400 followed by 14200 suggests us a trading range for the upcoming session. PCR stands at 14400 validates it as an immediate support level. Build up in puts & writing in call option do the bears favor.
Nifty futures strategy for the week
Support 14350, Resistance 14760.
Strategy – Buy on dip around 14400, for the target of 14650-14760 OR Sell below 14350 for the target of 14200-14050.
Nifty futures strategy for the day
Support 14350, Resistance 14500.
Strategy – Buy above 14500 for the target of 14580-14650 OR Sell below 14350 for the target of 14280-14240.
The financial index Bank Nifty showed a profit booking before the revelation of banks Q3 2021 earnings. Bank nifty price slipped from 32700 levels and corrected for more the 600 points in the last two trading sessions. Now, the next move of bank nifty would mainly depend on banking giants. Technically, Price needs to trade and hold above 32000 to be ruled out any correction possibility, and rally for 33500-35000. Below 31900, the price may correct for 31300 marks.
Key support lays down at 31300(Spot Level). Above 31300(Spot Level) marks price may hold bull’s momentum and any dip would be a buying opportunity for 33500-35000(Spot Level) levels.
Bank Nifty futures strategy for the week.
Support 31300, Resistance 32800
Strategy – Buy around 32000 with a stop loss of 31300 for the target of 32700-33300 OR Sell below 31900 with a stop loss of 32500 for the target of 31300.
Bank Nifty Futures strategy for the day
Support at 31900 and Resistance at 32500
Strategy – Buy above 32500 with a stop loss of 31900 for the target of 32800-33300 OR Sell below 31900 with a stop loss of 32500 for the target of 31500-31300.
Top Stock Recommendation for Monday (18th Jan 2020)
HIND PETRO (Futures)
The stock has formed a inverted head and shoulder pattern on the daily chart. We may see a sharp upside move in coming days. Traders are advised to buy above 232 for the upside target of 236 and then to 238 levels in the days to come.
Support and stop loss remain at 226.
Sector Update and Cash Stock Recommendations will provide on Monday during market hours.
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