Nifty formed the third straight red candle on the daily chart. Technically it is a Black crows formation that suggests a long side position should avoid. Technically 14500 is an immediate resistance, Trader may continue the “Sell on High” strategy.
Market Summary
Indian Market witnessed higher volatility on the account of the upcoming annual budget. Nifty index gave up its opening gains during the closing part of the trade to close lower. Nifty underperformed the Bank Nifty Index by 0.8% with both the indices witnessed profit booking. IT stocks were bearish on Monday’s trade. The sector tracked overall weak indices despite minor recovery towards the end. Naukri loses 7%, HCL Tech and Co forge also shed 4% each. Pharma stocks were on a bullish note despite the overall bearish tone of the benchmarks. The Nifty Pharma index gains almost 2% after India’s Covid-19 vaccination drive picks up pace. Auro pharma led the gains by hitting fresh 52-week high. Oil and Gas stocks were under pressure on Monday tracking international crude prices. Also, a huge selloff in heavyweight Reliance Industries (RIL) dragged the sectoral index.
The 30-share BSE Sensex was down 530.95 points, or -0.95%, to close at 48347.59. Nifty 50 ended down by 133 points or -0.93% to close at 14238.90. Bank Nifty closed at 31198.40 closed with a minor gain of 31.15 points. Indian Volatility Index surged 3.67 percent to close at 23.24. Market breadth ended in favor of bears. Around 1451 stocks on the NSE closed with a loss, while 501 stocks ended with a loss, and 70 shares are unchanged.
Technical View on Nifty and Bank Nifty
Nifty
Nifty formed the third straight red candle on the daily chart. Technically it’s a Black crows formation which suggests a long side position should avoid. Technically 14500 is immediate resistance and support lays down at 14050. Below 14500 marks price may correct for 14050 levels.
Nifty Trend – As per technicals, resistance laid down at 14500 and support around 14050. Every high is a selling opportunity around 14400 for a downside target of 14050.
According to Open Interest Data, the Maximum Call open interest stand at 15000 followed by 14500 and the maximum put at 14000 followed by 14200 indicates a narrow range of trading in the upcoming session. Valuation wise maximum Call & Put stand at 14400 & 14200 indicates a crucial level for the index. PCR shifted its support to 14100 levels.
Nifty Futures strategy for the day
Resistance comes at 14500 and Support lays down at 14200.
Strategy – Sell around 14350 with a stop loss of 14500 for the target of 14200-14050.
Fresh buying would be seen close above 14500.
Bank Nifty
Bank Nifty saved its Friday’s bottom and gave a marginal higher close despite a red formation. The index price has taken a resistance of 31800 throughout the session. Technically, below 31000 Index may correct further for 30800-30400 marks.
Bank Nifty Trend – Technically, below 32100, the price is likely to slip for 31000-30400. Else may test its immediate resistance of 31800-32000.
Nifty Bank Futures strategy for the day
Resistance at 31800 and Support at 31000.
Strategy – Sell below 31000 with a stop loss of 31800 for the target of 30400.
Fresh buy would be seen only close above 32100.
Today’s Top Recommendation (27th Jan 2021)
SPARC (Cash)
Catch this counter above 186. Break above 186 will test 194 and then to 200 levels in days to come.
Support and stop loss below 178.
DABUR (Futures)
Dabur is currently at major support levels, and we can expect the price to move higher. Traders are advised to buy it around 532 levels, for the upside target of 536 and then to 538 levels in the days to come.
Support and stop-loss remain at 525 levels.
Traders can trade safely in Nifty, Bank Nifty and Stock recommendations with levels only. More news and levels will update during market hours.
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