After thrashing new highs for three successive sessions, Nifty slipped and ended in the red. Moreover, RBI policy remains unchanged thereby meeting the expectations in order to contribute very little to the market. Consequently, their main intent was an economic recovery which got hit by Covid-19.
For the past one month, Nifty was in a consolidation mode but finally on 6th August manages to reach the mount of 16000. However, Nifty copes up and closes above the 16238 mark slipping down by 56 points.
In the last trading session, Sensex ended in red reflecting a dip of 215 points which stood at 54,227.
Moreover, a dull movement was observed in Bank Nifty. However, slips down by 25.50 points and stood at the 35809.25 mark.
On the Sectoral front, a vibrant buying pressure was perceived in telecom, utilities, power & industrials. On the contrary, a large number of profit-booking was perceptible metals, realty, energy, banks, and buyer durables.
If we converse about the broader market, then there was a surge of 0.23 and 0.28 percent in the BSE mid-cap index and small-cap index respectively.
Monday begins with a new hope
Cement Sector: Traders or investors should not lay their focus on the cement sector. People who are willing to work in the cement sector may try to sell the stocks and trade.
Private Banks: Complete focus lies on private banks. An upward trend is predictable for this week. A good growth opportunity is visible. Thus, for buying, private banks are worthy to invest.
Last week, we have seen positive momentum trading in Indian Indices.
Nifty futures has support at 16000—15700 and resistance at 16400.
Nifty futures settled above 16000 levels which is a good positive sign for the Indian stock market.
Any sharp downside panic till 16000 will be the best buying opportunity for positional traders with stop loss below 15700 on a closing basis for the upside target of 16400 and then to 16800—17500 levels in days to come.
Fresh downside panic we will see on a close below 15700 levels only.
For regular traders
Below 16225… The downside target looks 16186—16144.
More and More downside panic we will see on a close below 16144 levels.
Above 16289… Be ready for more upside rally till 16326—16368 and then to 16399 levels.
On the other hand, Bank Nifty has support at 35700 and resistance at 36300.
Decisive break and close above 36300 will take it to 36900—37400 levels in days to come.
Or else it could test its support level of 35700 again.
Decisive break and sustain below 35700 will see more downside panic till 35400—-35050 levels.
On the weekly basis… 35400—35050 will be the best buying opportunity in it.
Our bias turns negative below 34000 levels only.
Trendy Stock
BEL turns negative for the week. It has support at 175 and resistance at 183.
Below 175… Sell it with a stop loss of 183.
Downside target looks 169—166.
Sell BEL 180 CE around 6.50. Stop-loss 9.00. Target 2.50—0.50.
Trendy TCS
IT stocks rallied nicely and we expect a rally to train to continue this week too. Last week, TCS formed a bullish candle on the weekly chart and seems bottom-out pattern in it.
Buy on the decline with stop loss below 3175 for the upside target of 3525 levels.
Option call… Buy TCS 3350 CE above 50.00. Stop loss below 20.00. The upside target looks 90—120.