Indian stock market: Indian stock market benchmarks, the Nifty 50 and the Sensex, extended their losing streak for the second session in a row, ending in the red on Monday, July 22, in anticipation of the Union Budget 2024. The Nifty 50 ended the day down by 22 points, or 0.09%, at 24,509.25, while the Sensex dropped by 103 points, or 0.13%, closing at 80,502.08.
“Nifty index opened gap down and after the initial drop to 24360 zones, it bounced back immediately in the first hour to 24600 zones. It was followed by range bound move thereafter and managed to close above 24500 zones. It formed a small bodied Bullish candle with longer lower shadow indicating Recovery from lower levels. Now it has to hold 24500 zones for an up move towards 24750 and 24850 zones whereas supports are placed at 24350 then 24250 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL.
India VIX was up by 4.18% from 14.82 to 15.44 levels. Volatility slightly inched higher but is hovering at its lower zones which is overall comforting the bulls.
On option front, Maximum Call OI is at 25500 then 25000 strike while Maximum Put OI is at 24000 then 23500 strike. Call writing is seen at 24500 then 25700 strike while Put writing is seen at 24000 then 24400 strike. Option data suggests a broader trading range in between 24200 to 25000 zones while an immediate range between 24300 to 24700 levels.
Bank Nifty
On the Bank Nifty outlook, Taparia added, “Bank Nifty Index opened marginally lower and drifted towards 51850 zones in the initial hour of the session. However good REC overy was seen from lower levels and it moved higher towards 52427 marks in the latter part of the day. It formed a small bodied candle on daily scale and is taking support near its 20 DEMA from the last many sessions. Now it has to continue to hold above 52250 zones for an up move towards 52500 then 52750 levels while on the downside support is seen at 52000 then 51750 levels.”
Chandan Taparia has recommended three stocks to buy today, July 22. According to him, these stocks – Mphasis, Grasim and REC – are technically placed to see a decent upmove.
Stocks to buy
MPHASIS: Buy at ₹2925 | Target Price: ₹3070 | Stop Loss: ₹2850
MPHASIS has given rounding bottom breakout on weekly chart and forming higher lows on daily chart. It has formed a bullish candle on daily chart and trading at its 52 week high.
Grasim: Buy at ₹2811 | Target Price: ₹2920 | Stop Loss: ₹2740
GRASIM has formed base near 2700 band and taking support from there. It is respecting 20 DEMA and every small decline is being bought into.
REC: Buy at ₹618 | Target Price: ₹650 | Stop Loss: ₹600
Rec Ltd has formed bullish engulfing on daily chart. It has negated its series of lower lows on daily chart and inching higher.
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.
