Dalala street

Trade Setup For Monday: Nifty And Bank Nifty Outlook, Global Markets, Quarterly Results, Result Review

The market ended at the flat note on Monday and it was at times choppy clearly signalling fatigue in the market. The momentum has slowed down and may hit a pause button before resuming upward the journey.

Outlook For Nifty: Technical Chart Analysis

Short term traders and investors are advised to book partial profits near the supply zone of 18,300-18,400 levels as any violation of 18,100 levels may cause short term profit booking towards 18,000-17,800.

The Relative Strength Index (RSI) on the daily chart is hovering around 70 which is slightly on the overbought side, while daily MACD is still bullish.

The Rate of Change of Indicator is going downside after remaining flat which clearly reflects the flattish sentiment with negative bias.

Nifty Daily Technical Chart

The divergence is clearly visible in Price and in the indicator. For day traders, they should watch the 18225 level, if it breaks this level, it can witness some selling pressure.

Bank Nifty Outlook: Technical Chart Analysis

38000 level is still acting as a crucial support level and resistance is firmly at 38,500 and 38,803.23 levels. Sell in the resistance zone and start buying from 38000 zone.

Global Market Outlook

  • US Market Report: The NASDAQ 100 ended positive with 0.75% up. Dow Jones, on the other hand, ended slightly negative and shed 0.56%. S&P remained flattish
  • Asian Market: Both Nikkei and Shanghai Composite aclosed in green.
  • European Market: All major European markets were mostly positive. FTSE 100, DAX were positive.

Options Data

At 18,500 level, the maximum Call Open Interest of 20 lakh contracts has been seen and this strike level is the crucial resistance for this month and 19,000 is another level, which is acting as the next resistance level.

Nifty Call writing has been seen at 18300 strike, which added 2.89 lakh contracts, followed by 19000 strike which added 2.08 lakh contracts, and 18900 strike which added 1.75 lakh contracts. Maximum Put unwinding has been seen at 18200 levels.

Bulk Deals/ Block Deals

Alkali Metals: Societe Generale, a French multinational financial services company, has bought 57,406 existing equity shares of Alkali Metals Corporation in bulk deals for Rs 129.15 apiece on the NSE, informed bulk deals data available with the National Stock Exchange (NSE) showed.

Seacoast Shipping Services: Nomura Singapore entity bought 50 lakh equity shares in the company valued at Rs 19.71 per share on the BSE.

FII And DII Data

Foreign institutional investors (FIIs) sold shares worth 855.47 crore, while domestic institutional investors (DIIs) were net sellers of 115.31 as per the NSE data.

Day Trading Guide For Tuesday

The Market Mood Indicator is still hovering in the extreme greed zone, which confirms that it’s not the time to get aggressive.

However, global market data is positive, options data point support and resistance levels don’t point out any alarming trend. The technical chart also confirms that the index may witness timewise price-wise correction for a few more days.

There is no indication of any panic from any quarter, but it would be prudent to take some profit at higher levels.

Stocks Ideas For Short-term

Tata Motors: Buy | LTP: Rs. 507.25 | Stop-Loss: Rs 485 | Target: Rs 547 | Return: 8 percent

Tata Communications: Buy | LTP: Rs 1,557.70 | Stop-Loss: Rs 1,460 | Target: Rs 1,750 | Return: 12 percent

Brokerage Recommendations

  • Add Eicher Motors, target price Rs 3102: ICICI Securities
  • Buy CESC, target price Rs 120: ICICI Securities

Sector(s) to Watch Out

Bharat Jhunjhunwala, an ace trader and top market analyst is betting on the auto Ancillaries sector and they must be on your radar. He has a knack for identifying the sector rotation trend in advance and often tells which sector can start trending now. Watch out for his analysis on the sector.

Vikash Kumar

An investor with more than 15 years of experience in the market. I m deeply interested in positional and momentum-based trading strategies and love learning strategies and backtesting.

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