Hot Stocks | Lupin looks attractive on technical charts; Bata, Amara Raja show weakness

Nifty plunged 314 points or 3.4 percent, ignoring positive global cues, as special economic stimulus measures failed to cheer up the market.

The government’s decision to extend the lockdown till May end marred the sentiment. Bank Nifty continued its underperformance as compared to Nifty as it nosedived 6.7 percent to close at the lowest level since April 3, 2020.

The trend for the Nifty turned bearish as it broke the narrow range of the last 10 trading sessions on the downside by closing below 9,040 levels.

Earlier support of 9,040 levels would interchange its role as resistance.

On the derivatives front, we have seen Call writing at 9,000 levels. Therefore, 9,000-9,050 levels would act as an immediate resistance going forward.

During the last couple of weeks, Nifty failed to surpass the resistance of 50-DMA. At present 20 and 50 DMA, both are placed almost at the same levels at 9,250. This level will act as a far resistance.

As far as support is concerned, it is placed around 8,700 level, which is 50 percent retracement of the entire rise from 7,511 to 9,889.