Trading Strategy in Market post Adani Group Stocks Bloodbath

We are providing the Technical Outlook for Nifty and Bank Nifty for you to plan your trades:

Nifty (Spot):

• The technical structure is weak, as Nifty has surrendered its key support level of 17800.

• 17425-17300 is a critical demand zone where we can expect a bounceback.

• On the upside, 17800 and 18000 will be critical hurdles.

Bank nifty (Spot):

• Banknifty has surrendered its 100-DMA.

• The psychological support level is 40000, while the 200-DMA level is around 39000.

• On the upside, 40800-41000 will be the first resistance zone, then 41500 is a critical hurdle

Today, we officially start Budget week. There is a lot of Adani and Hindenberg since the last few days. We suggest to look beyond it. There are 5000 other stocks to trade and invest. If today Adani group stocks gap up then sellers can be trapped.

We stated this many times, that this year volatility will be high and the budget week is the best time for it. 

We as pro traders keep our positions small as stoploss will be deep. 

Nifty. Chart patterns are weak and can go lower. Nifty closed above 61.8% retracement which is positive. The index needs to hold lows of Friday at 17493. Below this, we may see a drop of 200 points more. Resistance is placed at 17775.

#BankNifty. Real bad situation here. We feel, some more dip of 500 to 800 points is expected unless Adani group stocks recover. The banking stocks are under pressure due to loan given to Adani stock.

The event to look at is whether we open up and sell off, or we sell off straight way and show some covering at the end.

Derivative. Data formation is weak, very weak. Since PCR is oversold and VIX is high, any upmove will come only through fresh buying and then short covering.

Make money using our bank Nifty option intraday tips and start rolling in profit everyday.

Three things that will decide the Market today

1) SGX NIFTY signals a positive start for the Indian Stock Market

- Nifty futures on the Singapore Exchange traded 48 points, higher at 17,737 signalling that the Indian Stock Market is headed for a positive start. 

2) Global markets in green

- Global stock market were trading in green, boosted by better-than-expected economic data and a sharp rise in Tesla stock price. In the US, Dow Jones and NASDAQ composite ended in green, while in Asia, the news of China reopening the market for global trading created an optimistic environment for investors.

3) Rupee ends 7 paise higher as against the US Dollar 

- The Indian National Currency - Rupee put forth a strong performance amidst the volatile market environment. On Friday, the Rupee ended at 81.52 as against 81.59 in its previous session.

Indian-Share-Tips.com Fundamental and Technical Picks of the Day 

Fundamental pick:- (for long term) 

1) IOC - Target 99 (22%) 

2) HDFC BANK - Target 1,930 (+19%) 

3) TATA MOTORS BANK - Target 525 (+18%)

4) INFOSYS - Target 1,760 (+16%)

5) SUN PHARMA -Target 1,200 (+15%)

Technical pick:- (for 2-3 days)

1) TVS MOTORS LTD 

Buy price - 1,051 

Target - 1,100

Potential upside - 5%

Trade light and let Adani group blood bath and budget pass to get more clarity that how things are going to unfold in mkt.