Yesterday Indian benchmark indices continued it’s down streak. Financial indices were the worst performer of the day.
Indian stock market ended lower after trading in a range for most parts of the trading day and closed lower for the second consecutive day. Indian benchmark indices Sensex fell over 850 points from its day’s high of 32,264 to end at 31,453, down by 0.8 percent. The NSE Nifty 50 ended at 9,205, down by almost 245 points from the highest point of the day at 9,450. In Nifty 35 out of the 50 index stocks ended with losses. While bank nifty fell most for around 2.39%.
Market breadth was in favor of sellers. Around 858 shares have advanced, 1504 shares declined, and 186 shares are unchanged. On sectoral front except for energy and infra, all other sectoral indices ended in the red. Among other sectoral indices, Nifty Pharma, Nifty FMCG, and Nifty Realty fell between 2-3 percent on the Tuesday trading session.
Technical Levels of Indian benchmark indices
Despite the sharp positive opening in the morning, Nifty witnessed selling pressure from upper levels.
Technically, Nifty is set for a significant decline with an immediate target of 9120—9050.
According to Open Interest Data, Maximum Call open interest stand at 10000 followed by 9500 & 9800, and Put at 9000 followed by 8500 suggests a broad trading range for the index.
Valuation wise maximum Call stand at 9300 and maximum Put stand 9200 indicates a crucial range for the index. PCR stands at 9000 validate it as a strong support level.
Writing in Call and buildup in Put option indicates follow up of today’s fall.
Nifty future strategy for the day
Nifty has strong support at 9180 levels while upside resistance comes at 9350.
Trading below 9180 may drop it till 9120—9050; else it may test its Resistance levels of 9350 again on the upside.
On the other hand, Bank Nifty fell the most among other benchmark indices for the second consecutive day. Axis bank contributes the most in today’s fall.
Bank Nifty Future strategy for the day
Support at 19000 and Resistance at 20200
Trader may enter sell position below 19000 for the target of 18200—17800
Fortunate trading above 20200 may lead price for 21000—21500 levels on the upside.
Traders can trade safely with levels only. More will update during market hours
Freefall continue in Nifty Realty
As expected Nifty Realty broke its support and fell sharply from its support level. For the upcoming session, we expect more downside move in this sector. Sustain below 170 will touch 160 and then to 150 levels in days to come. Hurdle around 182, break above 182 will negate our negative view in this sector.
Stocks like DLF and Sunteck looks weak on the charts. Traders can do short on the rise in these stocks for the intraday.
Top Stock Recommendations for today’s (06th May 2020)
Have an eye on this counter. Sell this stock as it looks extremely weak below 497 levels as stock is consolidating on the technical chart. We will expect a downside movement in it.
Traders can sell below 497 with a stop loss above 514 on a closing basis for a downside target of 480—475 levels in days to come.
The stock looks bearish on the technical chart. Sell it below 834 levels for a sharp downside rally.
Traders can sell below 834 with a stop loss above 870 on a closing basis for a downside rally of 790 levels in the coming days.
The stock looks bearish on the daily chart and ready to take reversal from current levels. Yesterday we have seen a sharp breakdown on the daily chart. Traders can go short on the rise around 1000 for the sharp downside move till 940 and then to 920 levels in days to come. Hurdle and stop-loss remain at 1050 for the day.
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