Today, before the coming budget, traders have adopted a cautious attitude, due to which the market remained in the recession trap for the sixth consecutive business day in the last week ended 29 January. On 29 January, the BSE Sensex closed down 588 points, or 1.26 per cent, at 46,285.77. The Nifty 50 closed down 182.90 points, or 1.32 per cent, at 13634.60, making it Bearish Candle on the daily chart. The Nifty saw a drop of over 5 per cent in the last week and it also made Bearish Candle on the weekly scale.
Nagraj Shetty of HDFC Securities told Money Control that after a 4-month gap a long negative candle has been seen on the weekly chart. The candle has also broken the 10-Week EMA’s Immediate Weekly Support at 13720 level. This moving average was the key support level for the Nifty for some time. Therefore, according to the time frame chart, it may be a confirmation of the market action top reversal pattern. He further said that the short term trend of Nifty remains weak. Further weakness may be seen in the Nifty.
Union budget can play an important role in determining the direction of the market. Nagraj Shetty says that any increase coming from the current level in the Nifty may face registrations around the level of 13750-13,800. The NIFTY’s near term down side target is located at 13050 (20-week EMA) for the next few weeks.
Let us know that in the week ended January 29, the performance of small and medium stocks was better than the large cap stocks. Last week, the Nifty Midcap 100 index was down by 0.4 per cent and the Small Cap 100 index by 0.63 per cent. At the same time, the Nifty 50 saw a much greater decline. The Nifty was down by 3.5 per cent on Friday and 2.3 per cent throughout the week.
Important support and registration level of Nifty
The key support level of the Nifty is at 13,498.67 and thereafter at the level of 13,362.73. If the Nifty goes over it, 13868.67 will be the first registration. After that, 14,102.73 will serve as the second registration.
On 29 January, the Nifty Bank closed at a level of 30,565.50 with a gain of 207.20 points. It saw a 2 percent drop last week. 30,176.1 is the first support for Bank Nifty. 29786.7 is the second support level for this. If there is an increase in the Bank Nifty, 31,0333.4 will be the first registration level on the upside. After this, 31,501.2 will work as second registration.
Important results coming on February 1
On February 1, 37 companies will release their quarterly results. This includes results from Castrol India, Coromandel International, Finolex Industries, Fortis Malar Hospitals, Kansai Nerolac Paints, Mastek, OnMobile Global, Rane Brake Lining, Reliance Capital, Reliance Infrastructure, Subex, Talbros Engineering, Triveni Turbine and Zydus Wellness.
FII and DII data
On January 29, Indian markets witnessed a sell-off of Rs 5930.66 crore from foreign investors. 2,443.2 crore was purchased by domestic institutional investors. These figures are based on the NSE statement.
F&O Banned Shares on NSE
Since we are in the opening day of the February series. Hence no stock will remain in F&O ban on 1 February. The F&O ban segment includes securities whose market-wide position limits exceed the 95 per cent limit.
Strategy on nifty
Virendra Kumar of CNBC-Awaaz says that it has a registration zone 13810-13859 and a big registration zone 13987-14037. The base zone is 13557-13500 and the larger base zone is 13368-13323. Today there will be a sell market, sell at every bull till 14037. After 13500, the option base is 13100-13000. FIIs have also purchased calls. FIIs will sell in pullbacks. Place SL of 13810 on the old short position.
Strategy on nifty bank
Virendra Kumar says that its registration zone is 30880-31000 and the larger registration zone is 31172-31350. The base zone is 30103-29925 and the larger base zone is 29658-29500. It is in slightly better condition than the Nifty. If there is a rally related to the budget, it will be seen in the bank itself. There will be sharp fluctuations between 31200-30200. Its range of 1000 points will determine the breakout direction.
Now know the best trading calls for today
Buy BPCL SL -377 TGT- 395
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Nirmal Bang Securities
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