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Stock Market Daily Updates: 1 March 2021

On the daily chart, we are observing that buy on declines would be the prudent strategy as possibility of profit booking at higher levels cannot be ruled out which would offer incremental buying opportunity to ride next leg of up move….

Photo Credit :

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Dear Trader…

Equity benchmarks witnessed profit booking as the indices corrected sharply from every high and traded on a negative note tracking weakness in other markets and worries over new pandemic restrictions in the world.

The Indian stock market is currently trading at a high valuation. In addition to an increase in the Corona case or a global lockdown will also have an impact on the domestic market have seen "Black Friday" further, the direction of the economy is still dependent on the status of the Corona virus.

Concerns have been raised that the transition to a new form of corona in India is on an alarming rise, again creating a state of lockdown in many states. Fear of a lockdown in the Indian stock market over the past few days and a re-lockdown in an industrial state like Maharashtra could affect economic growth and put a new burden on the government to take further relief measures and put natural pressure on economic recovery.

With the government's commendable efforts to get the Indian economy back on track, foreign funds - foreign portfolio investors - who have seen huge growth opportunities in India, continue to be buyers in stock specific. It will also be interesting to see what approach FPI takes in the coming days as profit booking is being considered.

Markets are largely mirroring global cues but the benchmark looks slightly overvalued so the possibility of consolidation in the near term cannot be ruled out and it would be healthy for markets.

On the daily chart, we are observing that buy on declines would be the prudent strategy as possibility of profit booking at higher levels cannot be ruled out which would offer incremental buying opportunity to ride next leg of up move. Meanwhile,

Technically, we feel that the Nifty needs to cross the level of 14606 points, and the trend continues to be profit booking on every rise and the next range to be watched out for is around 14474 14636 points and this can be achieved in the short term. The immediate support for the Nifty future are placed around 14505 and 14474 points.

Ø INDEX MOVEMENT - 01.03.2021

  • Nifty Future closed @ 14578 as on 26.02.2021

Nifty Future has resistance at 14606 – 14636 Point; above which other resistance levels are at 14676 – 14707 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 14530 – 14505 Point; below14505 Point, other support levels are at 14474 – 14434 Point.

I am positive for the next bullish trend only above @ 14707 Point but be with the trend. Let the market decide further moves.

As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario.

Regarding Long term positions, it is preferable to remain cautious now

If Nifty Future crosses @ 14676 Point, again then the upper side target is quite high and it may touch @ 14707 Point in the short term

  • Bank Nifty Future closed @ 34870 as on 26.02.2021

Bank Nifty Future has resistance at 34979 – 35035 Point; above which other resistance levels are at 35173 – 35303 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 34808 – 34676 Point; below34676 Point, other support levels are at 34606 – 34474 Point.

I am positive for the next bullish trend only above @ 35303 Point but be with the trend. Let the market decide further moves. 

As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario.

Regarding Long term positions, it is preferable to remain cautious now.

If Bank Nifty Future crosses @ 35303 Point, again then the upper side target is quite high and it may touch @ 35373 Point in the short term.

Ø Trading Idea for the derivative stocks….

Ø GRASIM IND. FO @ RS 1208

Positive Trend @ Rs 1197 / 1180 with Stop loss of Rs @ 1173 for the target near @ Rs 1223 - 1230 in short term.

Ø M & M FO @ RS 808

Positive Trend @ Rs 797 / 787 with Stop loss of Rs @ 777 for the target near @ Rs 838 - 840 in short term.

Ø SUN PHARMA FO @ RS 599

Positive Trend @ Rs 585 / 577 with Stop loss of Rs @ 570 for the target near @ Rs 613 - 630 in short term.

Ø ACC LTD FO @ RS 1732

Negative Trend @ Rs 1760 / 1777 with Stop loss of Rs @ 1787 for the target near @ Rs 1717 – 1707 in short term.

Ø MUTHOOT FIN. FO @ RS 1291

Negative Trend @ Rs 1313 / 1330 with Stop loss of Rs @ 1347 for the target near @ Rs 1273 – 1262 in short term.

Ø ADANI PORT FO @ RS 674

Negative Trend @ Rs 686 / 693 with Stop loss of Rs @ 707 for the target near @ Rs 660 – 646 in short term.

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Nikhil Bhatt | Research Analyst - SEBI

The author is a well established entrepreneur having a more than 16 years of experience in the field of stock market and financial management.

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