Stock Market Trend: Crude oil and rupee are not in favor of the market, know how you can earn big money today?

Business Desk – Stock Market Trend: The risk of ceasefire breaking between Iran and America has increased. Rejecting Iran’s proposal, US President Donald Trump said the ceasefire is currently on “life support”. Meanwhile, Iran’s Foreign Ministry has described America’s demand to end the conflict as “unreasonable”.

Amidst the fear of ceasefire breaking in West Asia, weak signals are being received from global markets. GIFT Nifty is currently trading with a fall of about 140 points. Apart from this, yesterday, foreign institutional investors (FIIs) made heavy selling in both cash and futures segments aggregating to more than Rs 11,000 crore.

Mixed trends were seen in trading in Asian markets. Dow Futures also look weak. In contrast, US indices posted modest gains yesterday, with the Nasdaq and S&P 500 both reaching new all-time highs. After Trump’s rejection of Iran’s proposal, crude oil prices are showing a slight rise, and have reached near the $105 level. Meanwhile, gold and silver have seen strong gains; Silver has jumped 8% and is trading near $87.

COMEX Gold also seems to be trading above the $4,750 level. Given this market environment, let’s look at the best trading strategies for today and identify potential profit opportunities.

Strategy for Nifty

According to Virendra Kumar of CNBC-Awaaz, Nifty will find its first resistance level in the range of 23933–24044, while the main resistance lies between 24109–24166 and 24206. On the other hand, the first support base is located at 23751–23780, while the main support base is at 23557/23609–23666. Yesterday, after breaking Base-1 (24067–23981), Nifty fell twice to reach Base-2 (23817).

FIIs sold heavily in cash, index and stock futures across all segments. Their net short position has now reached 221,000 contracts. A lot of call writing has taken place in 23900-24000 zone. Level 24044 (a major resistance) is present at 20DEMA. Today, on the day of expiry, put writing was seen at 23800, followed by 23600 and 23500 levels. Crude oil and rupee are currently not in favor of the market, while signals from US markets remain flat.

Nifty has already fallen 300-350 points from its 24200-24000 expiry setup. Trade carefully; Base-1 is very important. Keep a close eye on Nifty and FMCG sector. If Nifty IT remains above the 29600-29734 (20DEMA) range, selling pressure is likely to reduce. If the situation worsens further. Especially if 23780-23751 zone is broken, the probability of a downward move towards 23666-23609 increases.

On the contrary, if there is a bounce from Base-1, a bounce is possible initially to 23933, and then to 24000-24044 range. Based on current data and market conditions, the market is likely to trade in the range of 24000/24044 to 23780/23751. In case of any extraordinary developments in the market, a move in any direction above Resistance-1 or below Base-1 cannot be ruled out.

Strategy for Bank Nifty

Virendra Kumar said that for Bank Nifty, the immediate resistance is in the 55556-55667 zone, while the main resistance is located at 55888-56067/56234. On the other hand, immediate support (Base-1) is located at 54040-54177, while key support (Base-2) is located at 53467/53645-53813. As mentioned yesterday, a move below the level of 54834 is likely to test the 54601 and 54334 zones.

The initial low was 54,600, and the day’s low was around 54,346, staying above the range of 54,000–54,200. SBI closed below its 200-day EMA. Heavy Call writing was seen, while Put writing remained weak. Yesterday FIIs bought Bank Nifty, and strength was clearly visible in the second half of the session. The 10-day and 20-day EMAs are located at 55,556–55,667. For a minor reversal, it is necessary to break Resistance-1.

Weakness is likely to persist below Resistance-1, and there is scope for a decline to Base-1. Note that the zone of 54,177–54,040 is an important support area. Short positions should be closely monitored at this stage. If this support breaks. Whether today or tomorrow, there is a risk of slipping to the range of 53,645–53,467.

Keep an eye on these two stocks today

Arun Kumar Mantri of Mantri FinMart reveals his two best stock picks for today, and says he sees profit opportunities in FORTIS and DLF. Of these two suggestions, one is a ‘Long’ (Buy) call, while the other is a ‘Short’ (Sell) call. Take a ‘Buy’ position for FORTIS around 974. Set stop-loss at 962 and target at 998. Conversely, take a ‘Sell’ position for DLF around 590, set stop-loss at 598 and target 574.