The Indian stock market is poised for a potentially subdued opening on Tuesday, influenced by mixed signals from international markets. Early indicators from the Gift Nifty suggest that traders should brace for a cautious start. On the previous trading day, the domestic equity market showed resilience, with the Nifty 50 index surging past the 24,400 mark, reflecting a positive sentiment among investors.
Market Performance Snapshot
On Monday, the Sensex registered a robust gain, climbing 294.85 points (0.37%) to finish at 80,796.84. Meanwhile, the Nifty 50 saw an increase of 114.45 points (0.47%), concluding at 24,461.15. This upward trend indicates a strong market sentiment despite the mixed global cues.
- Sensex: Closed at 80,796.84 (+294.85 points)
- Nifty 50: Closed at 24,461.15 (+114.45 points)
Options Market Insights
Chandan Taparia, the Head of Derivatives and Technicals at MOFSL, highlighted critical insights regarding options trading. The highest Call Open Interest (OI) is concentrated at the 24,500 and 25,000 strike prices, while the maximum Put OI is identified at 24,000 and 24,400.
- Call Writing Levels: 24,500, 24,700
- Put Writing Levels: 24,400, 24,500
Taparia noted that option data indicates a trading range between 24,000 and 25,000, with a more immediate focus on 24,300 to 24,700 levels.
Nifty 50 Forecast
Despite the Nifty 50 struggling to maintain levels above 24,500, it successfully held the 24,400 territory, trading within a 120-point range during the session.
- Current Support Levels: 24,200 and 24,050
- Target for Upside: 24,650 and 24,750
The recent daily close above 24,444 is a positive development, suggesting potential for further gains if the index can sustain above 24,400.
Bank Nifty Analysis
The Bank Nifty index has shown a lack of momentum, forming a small-bodied candle on the daily chart. This index, sensitive to interest rates, has been lagging behind the benchmark, trading within a broader range.
- Support Levels: 54,750 and 54,500
- Target for Upside: 55,250 and 55,500
Taparia emphasized the importance of maintaining levels above 54,750 to unlock further upward movement.
Recommended Stocks for Today
Chandan Taparia has identified three stocks that investors might consider buying based on their potential for growth:
-
Hindustan Aeronautics Limited (HAL)
- Target Price: ₹4,850
- Stop Loss: ₹4,470
- Rationale: HAL has broken out from a falling trendline and is witnessing strong buying volumes.
-
Dixon Technologies
- Target Price: ₹17,770
- Stop Loss: ₹16,120
- Rationale: The stock is showing a bullish pattern with increasing trade volumes, confirming its upward trend.
- TVS Motor Company
- Target Price: ₹2,952
- Stop Loss: ₹2,700
- Rationale: TVS has retested its breakout levels with strong volume, indicating positive market sentiment.
Conclusion
As traders gear up for today’s session, the focus remains on key levels for both the Nifty 50 and Bank Nifty, while selected stocks present compelling investment opportunities. Keeping a close eye on global cues and option data will be crucial for navigating the market effectively.
