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Stock Market Daily Updates: 23 Feb 2021

On the chart pattern suggests that if Nifty future crosses and sustains above 14707 levels it would witness buying which would lead towards 14777- 14808 levels. However if index breaks below 14606 levels it would witness selling which would take towards 14570-14533.

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Dear Trader…

As expected, Nifty future opened with a selling pressure throughout the session dragged it lower on a negative note and Nifty future closed at 14642.55 with a loss of 344.45 points.

Domestic equities rose sharply in the first two weeks of February thanks to solid corporate earnings and a well-received federal budget, but markets have pared some of those gains in recent sessions due to profit-taking.

The rise in bond yields and news of fresh COVID-19 restrictions is factors that are adding to investor worries until there is more clarity on how the situation evolves, people are booking some gains. MSCI's All Country World Index was down 0.4% on Monday as expectations for faster economic growth and inflation globally battered bonds and boosted commodities.

In domestic trading, Maruti closed down 3.44%, Dr Reddy at 4.16% and Reliance Industries closed down 3.5% and was the biggest drag on the indexes after India's top court barred a final ruling by a tribunal reviewing the conglomerate's deal to buy Future Group's retail assets.

The results were weaker than expected in the final phase of the season and the alarming rise in the number of new positive cases of corona in Kerala and Maharashtra led to fears of another massive lockdown and cautious signs of further economic turmoil in the coming days.

Caution will now be needed as the financial sector stabilizes in the coming days and valuations in the Indian equity market are high. The UBS Securities report also said that US and British investors are focusing on India's medium-term growth potential and are optimistic, while Asian investors are expressing concern over the high valuation of the market.

Volatility index has stayed below 22 levels throughout the week despite profit booking being seen in the index. The current reading suggests some consolidation in the index in the near term. Only move above 23 should be considered as a caution for equities.

We expect volatility to remain high and current Put base of 15000 strikes should act as immediate support for the index. Below this, VWAP levels of the series near 14808 are likely to act as major support for the February settlement. On the higher side, intermediate hurdle can be seen at 14808 levels, which have gained significant OI in the last few sessions.

A round of short covering is expected from the Reliance. HDFC and Banking and technology space, which have seen continued to rise in the next series.

The Indian stock market will also be keeping a close eye on the situation, with petrol and diesel prices reaching record highs following the recent rise in international crude oil prices.

In my opinion, it would be advisable to book profits in every bullish trend as the market has reached an all-time high with an unprecedented historic rally in just one year after the Corona epidemic hit the Indian stock market.

On the chart pattern suggests that if Nifty future crosses and sustains above 14707 levels it would witness buying which would lead towards 14777- 14808 levels. However if index breaks below 14606 levels it would witness selling which would take towards 14570-14533.

Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in


Ø INDEX MOVEMENT - 23.02.2021

  • Nifty Future closed @ 14646 as on 22.02.2021

Nifty Future has resistance at 14676 – 14707 Point; above which other resistance levels are at 14733 – 14770 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 14606 – 14570 Point; below14570 Point, other support levels are at 14533 – 14505 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 @ 14707 Point, again then the upper side target is quite high and it may touch @ 14733 Point in the short term.

Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in

  • Bank Nifty Future closed @ 35162 as on 22.02.2021

Bank Nifty Future has resistance at 35303 – 35474 Point; above which other resistance levels are at 35606 – 35770 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 35008 – 34808 Point; below34808 Point, other support levels are at 34676 – 34474 Point.

I am positive for the next bullish trend only above @ 35606 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 @ 35474 Point, again then the upper side target is quite high and it may touch @ 35606 Point in the short term.

Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in


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