Indian stock market: On Monday, domestic benchmark equity indices Sensex and Nifty 50 closed the session relatively unchanged, following mixed signals from global markets. However, by the afternoon, both indices had recovered their earlier losses and continued to climb, bolstered by positive trends in international stocks and fresh foreign investments.
The 30-share BSE Sensex finished 56.99 points, or 0.07%, lower at 79,648.92, while the Nifty 50 ended at 24,347.00, down 20.50 points or 0.08%.
“Nifty index opened slightly negative and after dropping in the initial tick, it took support near 24200 zones and witnessed steep recovery of 260 points. It was followed by some range bound move and finally gave up its intraday gains in the last hour. It formed a small bodied Doji sort of candle with equal shadows on either side. Now it has to hold above 24350 zones for an up move towards 24500 then 24650 zones whereas supports are placed at 24200 then 24100 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL.
India VIX was up by 3.47% from 15.34 to 15.87 levels. Volatility has been overall cooling off from the last five sessions and comforting the bulls for support based buying but needs to come down below 15 levels for stability.
On option front, Maximum Call OI is at 25000 then 25500 strike while Maximum Put OI is at 23500 then 23000 strike. Call writing is seen at 25000 then 24500 strike while Put writing is seen at 23500 then 24300 strike. Option data suggests a broader trading range in between 24000 to 24700 zones while an immediate range between 24100 to 24500 levels.
Bank Nifty
On the Bank Nifty outlook, Taparia further added, “Bank Nifty Index opened marginally lower and drifted towards 50150 zones in the initial hour of the session. However quick recovery was seen from lower levels and it extended the momentum towards 50800 levels in the latter part of the day. It formed a small bodied candle on daily scale as buying is visible at lower levels but momentum is missing at higher zones. Now it has to continue to hold above 50350 zones for a bounce towards 50850 then 51000 levels while on the downside support is seen at 50250 then 50000 zones.”
Chandan Taparia has recommended three stocks to buy tomorrow, August 13. According to him, these stocks – Tata Motors, Cipla and Oil India – are technically placed to see a decent upmove.
Stocks to buy
Tata Motors: Buy at ₹1075 | Target Price: ₹1145 | Stop Loss: ₹1040
Price is retesting its breakout level from an ascending triangle on the daily chart with high buying volumes. The Stochastic Indicator has turned up indicating upward price momentum.
Cipla: Buy at ₹1586 | Target Price: ₹1660 | Stop Loss: ₹1550
Price has broken out of a consolidation zone on the Daily chart with higher than average buying volumes. The ADX Indicator is headed up which suggests the up move has strength to support it.
Oil India: Buy at ₹667 | Target Price: ₹710 | Stop Loss: ₹640
The most recent candle on the daily chart has breached its previous resistance and is headed towards its All Time High with high buying volumes. The MACD Line has crossed the signal line from below indicating upward buying momentum.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
