The Nifty50 is likely to consolidate around 11,100-11,200 levels on March 3 tracking positive trend seen in other Asian markets. The index has strong support near 11,100-11,000 levels.
Trends on SGX Nifty indicate a positive opening for the index in India, with a 22 points, or 0.2 percent, gain. The Nifty futures were trading around 11,143-level on the Singaporean Exchange.
On March 2, bears took control in the the last one hour of the trading session as the S&P BSE Sensex started correcting from its intraday high of 39,083 and close at 38,144, wiping out 939 points in the process. The Nifty50 broke below 11,200 but found support near 11000.
Let’s look at the final tally on D-Street on March 2 – the S&P BSE Sensex fell 153 points to close at 38,144 while the Nifty50 was down 69 points to end at 11,132.
Sectorally, the action was seen in IT while selling pressure was visible in the public sector, metals, oil & gas, energy, telecom, and banking stocks.
On a day when Sensex was down more than 150 points, Nifty50 broke below 11,200 levels, nearly 400 stocks on the BSE hit a fresh 52-week low, including Gillette India, Hero MotoCorp, ACC, L&T, IndusInd Bank, Thermax, Lupin, M&M and Raymond.
The rupee pared all its initial gains and settled 50 paise lower at 72.74 (provisional) against the US dollar on Monday after two fresh cases of coronavirus detected in India.
On the institutional front, FPIs were net sellers in the Indian market for Rs 1,354 crore while the DIIs were net buyers to the tune of Rs 1138 cr, provisional data showed.
Technical View:
Nifty formed a bearish candle on the daily charts as it gave away most of the intraday gains
Critical long-term averages are placed around 11,111 levels. Hence, technically speaking, the possibility of this correction getting culminated around the levels of 11k looks higher
In case of a pullback attempt initially, upsides may remain capped in the zone of 11433 – 11536 levels.
For the time being, traders should remain neutral
Three levels to track on Tuesday would be 11036, 11433, 11536 (swing low of Feb 27)
India VIX moved up sharply by 8.44% at 25.20 levels. India VIX is sustaining above the horizontal trend line on the daily scale and thus volatile swings may continue in the coming days too.
Max Call OI: 12000, 11800
Max Put OI: 11800, 11300
Stocks in the news:
Infosys partners with IBM to help businesses accelerate their digital transformation journey with IBM Public.
SBI will be in focus. The mega IPO by SBI Cards and Payment Services (SBI) was subscribed 38.87 percent on the first day of the bidding process on Monday.
The country's largest two-wheeler maker Hero MotoCorp on Monday reported a 19.27 percent decline in total sales at 4,98,242 units in February.
Technical Recommendations:
We spoke to HDFC Securities Ltd and here’s what they have to recommend:
MindTree Ltd: Buy| LTP: Rs 1005| Target Rs 1100| Stop Loss: Rs 922| Upside 9%
Jubilant FoodWorks: Sell| LTP: Rs 1664| Target: Rs 1530| Stop Loss: Rs 1755| Downside 8%
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