Indian Stock Market closed on a positive note after the RBI monetary policy outcome. Now, Benchmark Index Nifty 50 is facing strong resistance around 14900 any decisive move beyond these levels will take the index to fresh highs. Financial stocks witnessing a sharp short-covering post the announcement of the RBI’s monetary policy. On the options front. (April 08, 2021 expiry), across the board, writing was seen in the put option strikes as Nifty and Bank Nifty trended higher.
Market Summary
The Reserve Bank of India (RBI ) has once again maintained a ‘Status Quo’ in policy repo rate and stance in the first bi-monthly monetary policy of fiscal FY22. Investors cheered RBI’s policy outcome and tapped equity markets. Both Benchmarks maintaining their gaining spree. Nifty Auto stocks were in the fast lane as the market was trading on a bullish note. Nifty Auto was among top gainers tracking positive counterparts. Ashok Leyland outperformed as the top bull.
Nifty Pharma stocks continued to outperform amid progression in vaccine drives. The Index climbed over 1% to further lift the bullish indices. Dr. Reddy was the top gainer, Auro Pharma and Divis Lab also surged over 1%. Nifty FMCG stocks traded higher to join markets bulls. Godrej Consumer, Dabur, Britannia, and ITC also gained over 1% to inspire outperformance from the sector. Metal stocks traded broadly on a higher note. JSW Steel and APL Apollo shined too.
The 30-share BSE Sensex closed at 49661.76 up around 460.37 points, or +0.94 %, over the previous day. The Nifty ended up around 135.50 points or 0.92% to close at 14819.00. Bank Nifty closed at 32991.20, closed with a gain of 489.85 points. Indian Volatility Index plunged -2.84% percent to close at 20.25. Market breadth ended in favor of advances. Around 1264 stocks on the NSE closed with gain, while 621 stocks ended with a loss, and 371 shares are unchanged.
Technical View on Benchmark Index
Nifty
Benchmark Index Nifty 50 formed a bullish candle on the daily chart. Any decisive breakout above 14900 will take the index to the 15100–15200 levels. Immediate support is placed at around 14700–14600 levels. Momentum indicators like RSI, MACD, indicating the presence of an uptrend. Nifty is trading above the 50 and 200 Simple Moving Averages. The index is expected to gain momentum, which could lead to an upside projection till the 15100 levels.
As per technical levels, resistance laid down at 14,900 and support at 14800. Sustain above 14,800, it may test start a rally for 14900-15100 on the upside. Below 14700 marks, the price may correct further to 14600—14500 on the downside.
According to Open Interest data, the maximum CE open interest stand at 15000 followed by 14900 and the maximum PE at 14700 indicates a range of trading in the upcoming session. Valuation wise maximum CE & PE stand at 14800 & 14850 is a crucial level for the index.
Nifty Futures strategy for the day
Resistance comes at 14900 and support lays down at 14800.
Strategy – Fresh sell below 14800 for the target of 14700—14600 or else it could test its resistance level of 14900—15000 on the upside.
Bank Nifty
Bank Nifty outperformed the Nifty index by 0.6% with both the indices closing in the green. Financial heavyweights contributed to the majority of the index gains. Bank Nifty ended with the gain and closed around 32991.20 (Spot level). Technically buying can be seen around 33200 levels. For the upside target of 33500. Fresh sell can be done only below 32800 for the downside target of 32000.
Nifty Bank Futures strategy for the day
Resistance at 33200 and Support at 32300.
Strategy – Either buy above 33200 for the target of 33800—34000 or sell below 32800 for the downside target of 32800—31500.
Top Stocks Recommendations for Today (8th April 2021)
BHARTI AIRTEL (Cash)
Price retraced from 50 percent of the last upleg as depicted in the chart. Technically, It looks good for 585-615 level on the upside
Trader may initiate long position for abovementioned levels with a stop loss of 530.
AURO PHARMA (Cash)
Price has been trading and holding above all major averages. Technically, It looks good for 965 level on the upside.
Trader may initiate long position for abovementioned levels with a stop loss of 880.
TRENT (Futures)
After a sharp fall, the stock has formed a bullish pattern on the lower levels. Traders can buy above 738 for upside move till 780 and then to 815 levels in days to come.
Support and stop loss below 700 levels. Trade with the levels only.
Traders can trade safely in Benchmark Index and given stock recommendations with levels only. More will update during market hour. To get real time news and updates of market on your WhatsApp. Click on the banner given below.
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