The Indian stock market is poised for a subdued start on Tuesday, influenced by recent declines in global indices. Early indicators from the Gift Nifty suggest that the Indian market may open lower today. However, the previous day saw the domestic equity market continue its positive trajectory, marking its fifth consecutive day of gains, with both the Sensex and Nifty 50 climbing over 1%.

Market Performance Overview

On Monday, the Sensex surged by 855.30 points, or 1.09%, closing at 79,408.50. Meanwhile, the Nifty 50 rose by 273.90 points, representing a 1.15% increase, finishing at 24,125.55.

• Sensex: +855.30 points (1.09%)
• Nifty 50: +273.90 points (1.15%)

Chandan Taparia, the Head of Equity Derivatives and Technicals at MOFSL, provided insights into the options market. He noted that the highest Call Open Interest (OI) is at the 24,200 and 24,500 strikes, while the maximum Put OI rests at 24,000 and 23,500 strikes.

Nifty 50 Trading Insights

The Nifty 50 has shown resilience, forming a series of higher lows over the past week. Taparia highlighted that the index has created a bullish candle on its daily chart, indicating strong buying momentum.

• Support Levels: 24,000 and 23,850
• Resistance Levels: Targeting 24,250 and 24,400

For the Nifty to maintain its upward trend, it must hold above the 24,000 mark, as this will pave the way for potential gains.

Bank Nifty Highlights

The Bank Nifty reached an all-time high of 55,461 on Monday and has been consolidating at elevated levels. According to Taparia, the index has consistently formed higher lows, closing with significant gains of over 1,000 points near 55,300.

• Support Levels: 55,000 and 54,750
• Target Levels: Aiming for 55,750 and 56,000

To sustain its bullish momentum, the Bank Nifty needs to stay above the 55,000 level.

Stocks to Watch

Chandan Taparia has identified three stocks worth considering for today, April 22:

• UPL

  • Recommendation: Buy
  • Target Price: ₹715
  • Stop Loss: ₹650
  • Rationale: UPL’s stock has experienced a range breakout and a bullish MACD crossover, indicating strong momentum.

• Federal Bank

  • Recommendation: Buy
  • Target Price: ₹212
  • Stop Loss: ₹197
  • Rationale: The stock has surpassed a cup and handle pattern, supported by a bullish candle and rising RSI.
• REC
  • Recommendation: Buy
  • Target Price: ₹471
  • Stop Loss: ₹426
  • Rationale: REC has broken out of a downward trendline with increased buying volume, closing above its 50 DEMA.

Conclusion

As the Indian stock market gears up for today’s trading session, investors should keep an eye on global trends and the movements of key indices. With strong performances noted in recent days, the outlook remains cautiously optimistic, especially for select stocks recommended by experts.