Nifty rebounds from the support levels and closed with 1 percent gain in April’s first trading session, on US President Joe Biden’s $2-3 trillion spending plan. Metals stocks were among the biggest outperformers. Benchmark index Nifty needs to close above 14,900 for the further upside move. On the options front (April 01,2021 expiry), across the board writing was seen in the put option strikes as Nifty trended higher.
Dalal Street Summary
Indian Markets witnessed buying sentiments on Thursday’s trading session, tracking positive global cues as investors focus on US President Joe Biden’s infrastructure plan. Also losses were seen in treasuries which played in the upward movement in stocks. Barring FMCG, all other sectoral indices ended the day in the green. Nifty Metal index emerged as the top bull. Metal stocks were on the upside amid higher Shanghai base metals. Heavyweight stocks such as NALCO, JSW Steel were in the fast lane, JSPL surge 6—8%.
Nifty Pharma stretched the winning streak, the index has been performing well this week, Sun Pharma led the gains by surging almost 1.5%. Nifty IT stocks were trying to find their in the afternoon trade on Thursday after a subdued morning, HCL tech led the gains by advancing 2%. Automobile company stocks were in focus as majority of the companies presented their March sales data. Nifty Auto was among top gainers tracking positive counterparts.
The 30-share BSE Sensex closed at 50029.83 up around 520.68 points, or +1.05 %, over the previous day. Nifty 50 ended up around 176.70 points or 1.20% to close at 14867.40. Bank Nifty closed at 33858.00, closed with a gain of 554.10 points. Indian Volatility Index plunged 3.18% percent to close at 19.99. Market breadth ended in favor of advances. Around 1593 stocks on the NSE closed with a gain, while 353 stocks ended with loss, and 56 shares are unchanged.
Now, what’s ahead???
Nifty is facing psychological resistance around 14900–15000 zone and any convincing move beyond this resistance would open further upside. On the dips, 14500 levels could offer support to the market. Traders will watch these levels closely next week. As weekly and daily MACD, along with other technical parameters are still in sell mode, traders should initiate long positions only if the Nifty sustains above 14,900, for the modest target placed at around 15,120.
Events that may add volatility, Need to be watched
*5th April 2021, Monday –Nikkei Markit Manufacturing PMI (Mar)
*7th April 2021, Wednesday – Interest Rae Decision
*07th April 2021, Wednesday-Reverse REPO Rate
*7th April 2021, Wednesday-Cash Reserve Ratio
*07th April 2021 Wednesday- Nikkei Services PMI (Mar)
*8th April 2021 – Weekly Expiry
*FII and DII participation
Technical View on Nifty and Bank Nifty
Nifty made a strong recovery from the intraday low of 14,692 and formed a Hanging Man pattern and a small bullish candle on weekly charts. 14,900 looks to be significant resistance in the near term. If the index closes above it, then it can induce some strength in the index, which can be extended further for the upside target of the 15100—15710 zone. Below 14,690 as a breach on a closing basis can induce weakness in the near term.
On the option front, Maximum Put open interest was seen at 14,000 followed by 14,500 strike, while Maximum Call open interest was seen at 15,000 followed by 16,000 strike. Call writing was seen at 15,000 then 15,100 strike, while Put writing was seen at 14,500 then 14,200 strike. The data indicates a wider trading range for the Nifty at 14,500—15,200.
Nifty Futures strategy for the day
Support at 14700. Resistance at 14900.
Either side of the breakout will give the next 100—200 points in the respective direction.
Bank Nifty outperformed Nifty 50 index by 0.5% with both the indices closing in the green. Financial benchmark index added fresh long positions during the day. Technically bank nifty index needs to hold above 34,000 to witness a bounce towards 35,000 levels While on the downside support is seen at 33,000 levels.
Bank Nifty Trend – Key support levels lays down at 33,000(Spot levels ). Above 34000 (Spot level), the price may bounce back for 34500 and then to 35000. Below 33000 , it may correct for 32500—32200 marks on the downside.
Bank Nifty Futures strategy for the day.
Support at 33000 and Resistance at 34,000.
Either side breakout will give the next 500—80 points in the respective direction.
Nifty Pharma still looks solid for the bulls
Nifty Pharma is ready to fly high. It has shown a positive strength and formed a “Marubozu candle” pattern on the weekly chart. We will expect a sharp upside rally in upcoming trading sessions. Technical indicator RSI standard (14) showing divergence for the upside which is also supporting our bullish view in this sector.
Technically bulls are likely to continue their upside rally till 13100–13500. Nifty Pharma has a hurdle at 12450, break and close above 12450 could test 13100 and then to 13500 levels in days to come. Support at 11200, break and close below 11200 will negate our positive view in this sector.
Stocks like Dr. Reddy and Torrent Pharma look positive on the chart and we will expect an upside move in the coming days.
Dr. Reddy – Traders can go long above 4630 for the upside to move till 4930 and then to 5230 levels in days to come. Support and stop loss below 4420 on a closing basis.
Torrent Pharma – Stock formed a bullish pattern on the weekly chart and ready for a fresh breakout. Hurdle at 2575, break and close above 2575 will touch 2800 and then to 2920 levels in days to come. Support at 2470, our positive view will negate below 2470 levels.
Trade with the levels only.
Top Stocks Recommendations for Monday (5th April 2021)
Price seems to be bottoming out with the Morning Star pattern supported by Positive divergence with RSI. Technically, It looks good for the fresh rally on the chart.
Trader may initiate long position for abovementioned levels with a stop loss of 5.90.
Price has been following the Shark pattern. Technically, It looks good for 570 levels on the upside.
Trader may initiate long position for abovementioned levels with a stop loss of 500.
Technical Analysis:- The stock has formed a ‘Bullish Marubozu Candlestick Pattern’ on the weekly chart. And “Super trend standard 10, 4 and 10, 3 indicators are also suggesting the positive side momentum signal also Stochastic oscillator showing positive buying in it. The stock has its support at 221 and resistance at 240 levels. If price break and sustain above 240 will take it to 260++ levels in days to come.
Trade idea:- Based on the weekly chart study, traders and investors can go for buying above 240 for the upside target of 260++ levels with stop loss below 221 on a closing basis.
Trade with the levels only.
Traders can trade safely with levels only. More will update during market hours.
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