Nifty forms hammer candle on charts. What traders should do on Wednesday
Nifty 50 are expected to see a positive opening on Wednesday supported by gains in global peers.On the daily charts we can see that the Nifty has been broadly trading within the range in an upward sloping channel. Until the recent swing low of 21,730 not breached, we can expect the upmove to continue towards 22,000 – 22,130.
The daily and the hourly momentum indicators have a positive crossover, which is a a buy signal. Both price and momentum indicators are suggesting continuation of the positive momentum, however, considering the recent sharp reversals from the upper boundary (22,000) one needs to be cautious on the long side.
Stock-specific action and sector rotation are likely to continue during this period of consolidation. Key support levels are 21,750–22,125 while immediate hurdle is at 22,100 – 22,130.
* Nifty 50, ended in green on Tuesday’s session.Nifty 50 closed at 21,929.40 level, up 157.70 points or 0.72%.
* Immediate support is at 21,750 and the next overhead resistance to be watched around 22,125 levels.
* Nifty is likely to take immediate support at 21,791 followed by 21,741 and 21,659 levels, while on the higher side, it may see immediate resistance at 21,949, followed by 22,005 and 22,087 levels.
Our Recommended Strike Price was Nifty 21800 – 22000
Bank Nifty Weekly Expiry: Will the Bulls Charge or Bears Maim?
The Bank Nifty index experienced a subdued trading session one day ahead of the weekly expiry, with an ongoing struggle between bears and bulls. The lack of a clear trend indicates that a breakout is awaited to determine the market direction. The support is positioned at 45,500, while the immediate hurdle lies at 46,000
Our Recommended Strike Price was Bank Nifty 45700 – 46200
Stocks on News
Biocon : Biocon has tentative approval from USFDA for Dasatinib Tablets, which are used to treat Philadelphia Chromosome Positive Chronic Myeloid Leukemia.
Our Recommended Strike Price was Biocon 287.50 – 307.50
Britannia : Biscuit maker Britannia Ltd’s consolidated net profit fell 40% year-on-year to Rs 556 crore in the December quarter Revenue from operations rose by a marginal 1% year-on-year to Rs 4,256 crore.
Our Recommended Strike Price was Britannia Industries 5000 – 5100
Max Financial : Max Financial said insurance regulator Irdai has approved capital infusion of Rs 1,612 crore by Axis Bank into Max Life.
Our Recommended Strike Price was Max Financial 4880 – 4920