Global sell-off drop makes Indian Indices bleed. Sensex lost 2002 points while Nifty closed at 9293.5 with a 5.74% drop. Bank Nifty too dropped by more than 8%.
Indian stock market ended lower and registered their biggest one-day drop in over a month after weak global cues and rising tension between US-China over the coronavirus while poor macro data domestically. The S&P BSE Sensex ended 5.9 percent lower to close at 31,715. The NSE Nifty 50 ended at 9,293 with a fall of 5.7 percent. Bank Nifty too faced the heat. In Nifty 47 out of the 50 index stocks ended with losses while in Sensex only 2 out of the 30 index stocks ended the day with the gain on the first trading day of the month.
Market breadth was in favor of sellers. Around 567 shares have advanced, 1817 shares declined, and 179 shares are unchanged. On the sectoral front except for pharma, all other sectoral indices ended in the red.
Nifty Auto, Nifty Metal, and Nifty Realty ended with cuts of over 7 percent on Monday trading
Technical View on Nifty & Bank Nifty for today’s session
The Indian benchmark indices lost nearly 5% of its value after a weak global sentiment. We need a strong follow up in the coming days to confirm its downtrend.
According to Open Interest Data, Maximum Call open interest stand at 10000 followed by 9800 & 9500, and Put at 9000 followed by 8500 suggests a broad trading range for the index.
Valuation wise maximum Call Stand at 9500 and maximum Put stand 9300 indicates a crucial range for the index. PCR stands at 9200 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 9225 while resistance comes at 9480.
Trading below 9225 may drop it to 9120 and then till 8970; else it may test its resistance level of 9430—-9480 levels on the upside again.
On the other hand, Bank Nifty also underperformed the benchmark indices today. Financial benchmark fizzled out from the high and closed at 19743 with 8.32 % loss of its value
Bank Nifty Future strategy for the day
Support at 19500 and Resistance at 20300
Trader may enter in a sell position below 19500 for the target of 19000—18700.
Fortunate trading above 20300 may lead price for 20800—21500 levels again.
Traders can trade safely with levels only. More will update during market hours.
Freefall Starts in Nifty Realty
Today we have seen a sharp breakdown in Nifty realty and it is ready to enter in a free-fall zone. Now last hope for bull riders is 173, break and close below 173 will take it to 160 and then to 150 levels in days to come. The hurdle is at around 185, break above 185 will negate our negative view in this sector.
Stocks that look weak in this sector are:
Sunteck- Support around 180, break and sustain below 180 will touch 160 and then to 150 levels in days to come. Hurdle and stop-loss above 200.
Prestige- Stock is extremely weak on the daily chart and we will expect a sharp fall from these levels. Support around 160, break and close below 160 will take it to 140 and then to 130 levels in intraday session. Hurdle and stop-loss above 180 for the day.
Top Stock Recommendations for today’s (05th May 2020)
Sell this stock, as it looks extremely weak below 507 levels on the technical chart. We will expect a downside move in it.
Traders can sell below 507 with a stop loss above 516 on a closing basis for a downside target of 490—485 levels in days to come.
The stock looks bearish on the chart and give a fresh downside breakdown below 1069 levels. Sell this stock below the support level of 1069.
Traders can sell below 1069 with a stop loss above 1100 on a closing basis for a downside rally of 1035—1030 levels in the coming days.
Stock is extremely weak on the daily chart. We are expecting a sharp fall from these levels. Support at around 160, break and close below 160 will take it to 140 and then to 130 levels in intraday session. Hurdle and stop-loss above 180 for the day.
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