Indian stock market: Indian benchmark indices – Nifty and Sensex – ended Monday’s trading session in a flat note. The Sensex opened at 79,915, down from its previous close of 79,996.60, and remained in negative territory for most of the session. The index ultimately closed 36 points, or 0.05 percent, lower at 79,960.38. Meanwhile, the Nifty 50 opened at 24,329.45, slightly up from its previous close of 24,323.85, but ended the day 3 points lower at 24,320.55.
“Nifty index opened positive and after the dip in the initial half, it recovered to 24344 zones and remained in a narrow range of 100 points throughout the session. It formed a Doji sort of candle on daily frame and closed flattish. The index has squeezed in a narrow range from the last few sessions but buying is intact at lower zones. Now it has to hold above 24250 zones to extend the move towards 24500 and 24600 zones whereas supports are placed at 24200 then 24050 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL.
India VIX was up by 7.09% from 12.70 to 13.60 levels. Volatility slightly inched higher after cooling off in the entire previous week.
On option front, Maximum Call OI is at 24500 then 24300 strike while Maximum Put OI is at 24000 then 24200 strike. Call writing is seen at 24300 then 24450 strike while Put writing is seen at 24300 then 24000 strike. Option data suggests a broader trading range in between 24000 to 24500 zones while an immediate range between 24200 to 24450 levels.
Bank Nifty
On the Bank Nifty outlook, Taparia further added, “Bank Nifty Index opened lower and slowly drifted towards 52250 zones, although it traded with a negative bias throughout the day, momentum was missing. It formed a small bodied Bearish candle on the daily scale similar to a Doji which indicates indecision in the market. Now it has to continue to hold above 52200 zones for an up move towards 52650 then 52750 levels while a hold below the same could see some weakness towards 52000 then 51900 zones.”
Chandan Taparia has recommended three stocks to buy tomorrow, July 9. According to him, these stocks – BHEL, Chambal Fertilizers, GAIL– are technically placed to see a decent upmove.
Stocks to buy
BHEL: Buy at ₹328 | Target Price: ₹350 | Stop Loss: ₹318
BHEL has given range breakout on weekly chart and managed to hold above the same. It has formed a strong bullish candle on daily scale and supports are gradually shifting higher.
Chambal Fertilizers: Buy at ₹534 | Target Price: ₹520 | Stop Loss: ₹565
CHAMBEL FERTILIZERS has given an inside bar breakout on daily and narrow range breakout on weekly chart. Buying is visible across Fertilizer stocks with surge in trading and delivery volumes which may support the ongoing up move.
GAIL: Buy at ₹230 | Target Price: ₹245 | Stop Loss: ₹222
GAIL has given Cup & Handle breakout on daily chart and surpassed range of past five weeks. Mechanical indicator RSI has given bullish cross over and perfectly respecting 20 DEMA.
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.
