Global cues:
• Wall Street's main indexes edged higher on Wednesday, supported by technology stocks. The Dow Jones Industrial Average was up 55.65 points, or 0.19%, at 28,735.46, the S&P 500 was up 11.65 points, or 0.33%, at 3,523.58. The Nasdaq Composite was up 62.71 points, or 0.53%, at 11,926.61.
• European shares steadied on Wednesday after tumbling in the previous session due to a pause in a COVID-19 vaccine trial and on concerns about more lockdowns. The pan-European STOXX 600 index was flat by 0746 GMT, recovering from its first fall in four days
Indian markets:
• As Nifty ended above the 11,950 level on Wednesday, it formed a small bullish candle on the daily chart.
• Nifty climbed for the 10th straight session on Wednesday. Yet, the index failed to take out the 12,000 mark for the second session
• FIIs were net buyers of worth Rs 7,272.68 Cr and DIIs were net sellers of worth Rs. 1,276.14 Cr.
• India VIX slipped 2.46 per cent from 20.71 to 20.21 level. It needs to cool down further below 19 level for the bulls to be able to tighten their grip on the market.
• RIL, Wipro, Infosys, Bajaj Finance, HCL Tech, HDFC, TCS, Dr. Reddy’s Labs, ICICI Bank and IndusInd Bank were among the most active stocks on Dalal Street on Wednesday in value terms
• According to pivot charts, the key support level for the Nifty is placed at 11,863.07, followed by 11,755.13. If the index moves up, the key resistance levels to watch out for are 12,038.07 and 12,105.13.
• The important pivot level for Bank Nifty, which will act as crucial support for the index, is placed at 23,361.83, followed by 22,848.97. On the upside, key resistance levels are placed at 24,175.13 and 24,475.56.
• The International Monetary Fund (IMF) projected India’s GDP to decline by 10.3% in FY21 from 4.5% earlier. The downward revision comes on the backdrop of a rise in Covid-19 cases, and severe than anticipated economic contraction due to the pandemic caused by Covid-19.
Figure. Sectoral Indices (Change in %)
Option strategy for the day:
• Tomorrow is weekly expiry Nifty may close between 11950 and 12050.
• One can execute short straddle strategy by selling 12000 CE and 12000 PE.
• The above strategy should only executed only when market opens flat.
• The highest call option open interest of 23.37 lakh contracts was seen at 12,500 strike and highest put option open interest of 23.96 lakh contracts was seen at 11,500 strike
Stock picks of the day:
• Tata Consumer Products Ltd -Stock closed at price of 490.35 on Wednesday. STOCHRSI has a buy signal on the daily chart and stock saw massive buying on Wednesday. Expect the buying momentum to continue at this price and expect the stock to trade near 501 range.
• Zydus Wellness Ltd -Stock closed at price of 1820 on Wednesday. STOCHRSI and MACD have buy signal on the daily chart. Stock formed a long white candle indicating the buying momentum to continue at this price and expect the stock to trade near price range of 1837
• DCB Bank -Stock closed at price of 75.65 on Wednesday. Stock closed 0.2% down. Stock saw buying in the last one hour of the trade and stock touched its support of 76.6. Upside movement is expected in stock towards price range of 77.5
Disclaimer
Please note that all the recommendations/views/ levels we provide are based on the theory of technical/fundamental analysis and personal observations. This does not claim for sure/ certain profit or any fix returns. we are not be liable for any losses you make on the given takes and levels. You are advised to take your position with your sense, discretion and judgment. only you would be responsible for outcomes of your trades
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