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Nifty and Bank nifty support and resistance for tomorrow

• Updated on: February 23, 2021
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Hello friend! I hope you are doing good. I’m analyzing the market trend based on the chart, FIIs data, and the options chain data in this daily blog post. Based on this data, I’m sharing nifty and bank nifty support and resistance for tomorrow. I’m sharing few stock ideas for short-term trading in the bottom. So read this chart till the end. You can see this space every alternate day to get the latest trend and analyses.

Before we jump to our content, few things I want to share with you. These things are:

  1. The below analysis is based on my own analysis and understanding.
  2. The below analysis is not a BUY/SELL recommendation. So do not trade directly based on the below information.
  3. Stock trading carries risk. So trade only if you aware of the risk involved in trading.
  4. If you have any queries related to the below analysis, you can type in the comment box. I love to answer all your queries.

Daily Market summary

After a fall of two continuous days, the Market open gap-up, and we saw a continuous upside rally yesterday. The same rally continues today also. Most of the stock indices closed in green today, where Nifty Auto and Nifty IT were the top performers, closed with 2.3% & 2.2% gain respectively, and Nifty FMCG was the top loser, closed with 0.02% loss.

The Sensex hit a record high of 49,874.42 while the Nifty hit a record high of 14,666.45 in late trade today.

The broader market ended with strong gains. The S&P BSE Mid-Cap index rose 1.08%, while the S&P BSE Small-Cap index added 0.58%.

FIIs were the net buyer from last 10 trading sessions. bought 257 cr in cash market yesterday.

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Foreign Markets:

  • European stocks were trading higher on Wednesday, ahead of the inauguration of President-elect Joe Biden.
  • Most Asian indices closed higher on Wednesday as investors reacted to the release of China’s latest benchmark lending rate. The moves in Chinese stocks came as the one-year prime rate (LPR) and five-year LPR in China were both left unchanged at 3.85% and 4.65%, respectively.
  • US stocks climbed on Tuesday as investors digested results from the new earnings season as well as signals for another big stimulus and a faster pace of vaccine distribution ahead.
  • Janet Yellen, President-elect Joe Biden’s designated nominee for Treasury Secretary and a former chair of the Federal Reserve, appeared before the Senate Finance Committee on Tuesday. Yellen called for the federal government to enact a large stimulus to help the economy.
  • Biden, set to be inaugurated on Wednesday, unveiled his $1.9 trillion plan for economic relief last week as the country tries to get a handle on the COVID-19 pandemic.

Now let us look at the charts to find the Nifty support and resistance for tomorrow.

Nifty Support and resistance for tomorrow

nifty chart today

After two days of fall, we saw a sharp upside rally in Nifty yesterday. Nifty open Gap-up made a high of 14546.05 and closed at 14521.15 with a 1.68% gain yesterday. Today Nifty continues Its upside rally and hit a record high of 14,666.45 in late trade today.

Now based on the Fibonacci tool, 14048 acts as the current support level, and 14822 is acting as the current resistance level for Nifty.

The overall trend looks bullish, and there is no sign of weakness. So any decline should be treated as a buy-on-dips opportunity. Do not take any contra trade here.

A breakdown from 14000 will trigger our stop loss for a long trade, and a breakdown from 13500 will trigger a sell signal. So please do not take any short trade till we are not getting any breakdown from 13500.

Nifty Support and resistance based on option chain data

nifty support and resistance based on the option chain analysis

Based on the current OI data, Highest OI stands at 14500 PE and 14700 CE, which indicates that 14500 & 14700 are the nifty support and resistance, respectively, for the 21st January weekly expiry.

Today we saw a good OI buildup around 14500 PE, 14550 PE and 14600 PE, which indicates that Nifty is getting good support from lower levels. Data looks positive so 14700 & 14800 can be the next targets for coming sessions in Nifty.

Bank Nifty Support and resistance for tomorrow

bank nifty chart today

After made a new all time high 32718.95 on 14th January, we saw some decline due to profit booking on higher levels but after Gap -up opening yesterday, we can see a new rally toward the new high in Bank nifty.

Now based on the Fibonacci tool, 32000 is acting as the immediate support level and 33300 is acting as the new resistance level for Bank Nifty.

The overall trend looks bullish, and there is no sign of weakness. So any decline should be treated as a buy-on-dips opportunity. Do not take any contra trade here.

A breakdown from 31000 will trigger our stop loss for a long trade, and a breakdown from 29500 will trigger a sell signal. So please do not take any short trade till we are not getting any breakdown from 29500.

Bank Nifty Support and resistance based on option chain data

Bank Nifty Support and resistance based on option chain data

Based on the current OI data, Highest OI stands at 32000 PE and 32500 CE, followed by 32500 PE and 34000 CE. Technically, because 32500 CE carries the highest OI, it should react as an immediate resistance level. Still, when we look at the highest OI, the particular strike’s PCR is also important. This means a strike will only act as the resistance level if it has a PCR below 0.60, but here at 32500 CE, PCR is 0.61, so instead of 32500 CE, we should look at 33000 CE carries 0.06 PCR.

So based on current OI data, 32000 and 33000 are acting as the immediate bank nifty support and resistance levels respectively.

If you have any questions, please ask in the comment box.

Stocks to watch for short term trading

In this section, I’m sharing few scripts you can keep on radar for short term trading in cash segment. So let us look at the today’s scripts:

PDS Multinational Fashions Ltd:

stocks to watch

PDS Multinational Fashion is trading near to its 52 weeks high. A breakout will lead to an 18% – 22% upside from here. You can keep a stop loss below 580.

OAL:

nifty support and resistance

Today I have shared one stock on my Twitter handle, which is giving a 5.76% upside today itself. This stock still has the potential for a further upside rally.

OAL looks good above 620 for a18% to 22% upside rally. You can keep your stop loss below 530.


If you have any queries related to the above analysis or scripts, please type in the comment box. I love to solve all your queries. Your feedback and suggestions also welcome.

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DISCLAIMER: – we are not a SEBI research analyst. Views posted in this daily market update article only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline to interpreting specified analysis methods.  This information should only be used by investors and traders who are aware of the risk inherent in securities trading.

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