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Stock Market Daily Updates: 5 March 2021

As the Nifty has broken its consolidation range on the lower side, further fall in coming days can't be ruled out; now, traders have to be very cautious and careful to make more positions…..

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Dear Trader…

On the fourth day of the week, as an expected profit booking in the Indian stock market has seen a sharp decline as another spike in bond yields weighed on the overall global market sentiment and geopolitical tensions between the US and Syria escalated and finally breaking the consolidation range on the lower side and in BSE Sensex plunged with 600 points while the Nifty50 was down 190 points.

The Nifty future broke below crucial support level of 15232 points and Nifty formed a bearish candle on the daily charts. 

As the Nifty has broken its consolidation range on the lower side, further fall in coming days can't be ruled out; now, traders have to be very cautious and careful to make more positions, the reason is that most traders do not have the discipline of sitting on a case of a stop loss.

Corona's transition is again spreading alarmingly in various states of India including Maharashtra, Kerala, Gujarat, Chhattisgarh and the slump in the Indian economy and the sharp rise in bond yields on the global front last weekend.

Globally, China, US and Europe will keep an eye on the manufacturing PMI. International crude oil prices and fluctuations in the value of the US dollar against the rupee will also be monitored.

In the coming days, caution will be needed in view of the deceptive moves being made by the fund-giants as the market continues to be heavily biased, market will be keeping an eye on the possibility of a major blow to the economy due to the increasing transition of Corona and the fear of a lockdown in more states and cities in India.

Globally, China, US and Europe will keep an eye on the manufacturing PMI. International crude oil prices and fluctuations in the value of the US dollar against the rupee will also be monitored.

Technically, the short term trend on the Nifty future remains volatile; with a minor positive bias at 15088 and 15008 levels would be major hurdles. If the Nifty future crosses 15088 levels, it could jump to 15188 – 15202 levels. However, below 15008, the index would invite worries in the near term. 


Ø INDEX MOVEMENT - 05.03.2021


  • Nifty Future closed @ 15108 as on 04.03.2021


Nifty Future has resistance at 15133 – 15188 Point; above which other resistance levels are at 15202 – 15232 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 15088 – 15008 Point; below15008 Point, other support levels are at 14909 – 14888 Point.

It is a positive sign for the next bullish trend only above @ 15202 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 will cross @ 15202 Point, then the upper side target will be quite high and it may touch @ 15232 Point in the short term.

  • Bank Nifty Future closed @ 35885 as on 04.03.2021

Bank Nifty Future has resistance at 36006 – 36188 Point; above which other resistance levels are at 36272 – 36360 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 35770 – 35676 Point; below35676 Point, other support levels are at 35606 – 35474 Point.

I am positive for the next bullish trend only above @ 36360 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...!!!

Long term positions will remain cautious now.

If Bank Nifty Future touch 36360 Point, again then the upper side target is quite high and it may touch 36404 Point in the short term.

Ø Trading Idea for the derivative stocks….

Ø RELIANCE @ RS 2177

Positive Trend @ Rs 2177 / 2160 with Stop loss of Rs @ 2147 for the target near @ Rs 2202 - 2210 in short term…


Ø ACC LTD @ RS 1870

Positive Trend @ Rs 1870 / 1844 with Stop loss of Rs @ 1830 for the target near @ Rs 1888 - 1909 in short term


Ø KOTAK BANK @ RS 1890

Positive Trend @ Rs 1890 / 1877 with Stop loss of Rs @ 1860 for the target near @ Rs 1909 - 1919 in short term


Ø HDFC BANK @ RS 1555

Positive Trend @ Rs 1555 / 1530 with Stop loss of Rs @ 1517 for the target near @ Rs 1577 - 1590 in short term…


Ø RAMCO CEMENT FO @ RS 1022

Positive Trend @ Rs 1022 / 1008 with Stop loss of Rs @ 1003 for the target near @ Rs 1037 - 1050 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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