Trade Setup for today – Nifty under 9000. Financial index under pressure. Nifty and Bank Nifty technical levels to look for today.

22nd April 2020

 

Trade Setup for today 22nd April 2020

Amid global uncertainty and crude collapse, Nifty tumbled by 280 points and settled under the crucial level of 9000. On the sectoral front, the financial index was the biggest loser weighed by Indusindbank, ICICI Bank Axis Bank.

Indian stock market ended lower on the previous trading session due to negative global cues and falling crude oil price raised a fear worldwide. The BSE Sensex ended 3.2 percent lower at 30,636 while the NSE Nifty 50 ended below the 9,000 mark at 8,981 and down by 3 percent. After the US crude oil crash while Global markets traded negatively and the global slowdown is becoming a major reason to fell the Indian market.

The market breadth was in favor of sellers. Around 732 shares have advanced, 1647 shares declined, and 152 shares are unchanged. Among sectors, except pharma, other sectoral indices ended lower. The Nifty Bank, Nifty Auto, Nifty Metal and Nifty Media ended with a loss of over 5 percent while the Nifty PSU Bank and Nifty I.T. index fell over 3.5 percent each on Tuesday trading session.

 

Technical View

Nifty

 

Nifty price fell below the crucial support of 9000 which gave strength to bears in the market. Now the next support is lies around 8800.

Rising VIX increased the volatility in the market again.

According to Open Interest Data, the Maximum Call open interest stand at 9500 and Put at 9000 followed by 8500 suggests a broad trading range for the index. Valuation wise maximum Call and Stand at 9000 indicates a crucial level for the index. PCR stands at 8900 validate it as a strong support level. Long build up the input and writing in call option indicate weak move ahead.

 

Now, what next for today’s trade setup???

Nifty has broken below 9,000, we can follow sell on rally strategy till it bounces back above 9,300 levels again.

Nifty Future strategy for the day

Support 8900, Resistance 9100

Either side of the breakout will give 100—150 points in the respective direction.

Trading below 8750 levels may slide price to 8500 on the downside.

 

Bank Nifty

On the other hand, Bank Nifty plunged more than 5 percent mainly contributed by Indusind Bank, RBL Bank, ICICI Bank, Axis Bank, and SBI.

 

Now, what next in today’s trade setup???

The Bank Nifty faced resistance at 21,200 and gave a sharp slide to 19200 levels. If the price crosses it well, it could achieve a target of 18700.

On the flip side, Trading above the 20000 levels could test 21200 levels on the upside.

Bank Nifty Future strategy for the day

Support at 19000 and Resistance at 20000

Either side of the breakout will give 700—1000 points in the respective direction.

 

 

Top Stock for today’s (22nd April 2020) trading session.

 

CESC (Future)

Stock is trading in a positive trend and formed a bullish flag pattern on the chart. We will expect an upside movement in it.

Traders can buy above 613 with a stop loss below 595 on a closing basis for an upside target of 635 +++ levels in days to come.

 

BAJFINANCE (Future)

 

After a sharp downside rally, now stock is consolidating on the bottom and looks weak on the chart. Currently, we will expect a fresh downside breakout in this stock.

Traders can sell below 2080 with a stop loss above 2150 on a closing basis for a downside rally of 2000 levels in the coming days.

 Traders can trade safely with levels only. More will update during market hours.

Read our yesterday’s Nifty and Bank Nifty update, Click here!

 

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