The Indian stock market is poised for a positive opening on Tuesday, buoyed by encouraging signals from global markets. The GIFT Nifty index hints at a robust start for domestic equities. In the previous trading session, the Nifty 50 climbed past the significant 22,500 threshold, while the Sensex recorded a notable increase, closing 341.04 points higher at 74,169.95.
Market Performance Overview
On Monday, the Indian equity market showcased strong upward momentum. Here’s a snapshot of the key indices:
- Sensex: Closed at 74,169.95, up 0.46% or 341.04 points.
- Nifty 50: Finished at 22,508.75, gaining 0.5% or 111.55 points.
Chandan Taparia, Head of Derivatives and Technicals at MOFSL, provided insights into the options market, stating that the Maximum Call Open Interest (OI) is concentrated around 23,000 and 22,800, while the Maximum Put OI is at 22,000 and 22,500.
Options Market Insights
Taparia noted that there is noticeable call writing at the 22,800 and 22,700 strikes, with put writing observed at 22,500 and 22,300. This data implies a broader trading range between 22,000 and 23,000, with a more immediate focus between 22,300 and 22,700.
Nifty 50 Analysis
The Nifty 50 index experienced a bullish start, surging nearly 200 points within the first hour, reaching a peak of 22,577. Following this initial surge, the index consolidated within a 90-100 point range. It formed a bullish candle on the daily chart, closing with gains of 111 points.
- Support Levels: 22,330 and 22,222
- Resistance Levels: A hold above 22,400 is crucial for potential upward movement towards 22,650 and 22,800.
Bank Nifty Review
The Bank Nifty index also showed positive momentum, climbing to 48,481 during the first half of the session. However, it later traded within a tighter range of 150 points, closing around 48,350 with gains of approximately 300 points.
- Support Levels: 48,250 and 48,000
- Resistance Levels: Needs to maintain above 48,250 for a potential rise to 48,500 and 48,750.
Stock Recommendations for Today
Chandan Taparia has identified three promising stocks for investors to consider:
-
Varun Beverages
- Target Price: ₹540
- Stop Loss: ₹490
- The stock has shown a range breakout with a bullish candlestick pattern.
-
IndiGo (InterGlobe Aviation)
- Target Price: ₹5,020
- Stop Loss: ₹4,660
- The share is retesting a breakout from a symmetrical triangle, indicating strong bullish momentum.
- Voltas
- Target Price: ₹1,550
- Stop Loss: ₹1,415
- Voltas has broken out of a rounding bottom pattern, signaling a potential trend reversal.
Conclusion
As the Indian stock market gears up for Tuesday’s trading session, the outlook remains optimistic, driven by strong performances and constructive patterns in both the Nifty 50 and Bank Nifty indices. Investors are advised to keep an eye on the recommended stocks and market trends for strategic opportunities.
