Indian stock market: Market indices – Sensex and Nifty – closed in a flat note on Thusday, July 11. The Nifty 50 ended the session with a marginal decline of nearly 9 points, or 0.03%, closing at 24,315.95, while the Sensex finished 27 points lower, or 0.03%, at 79,897.34.
“Nifty index opened positive but witnessed profit booking right from the initial tick and extended the fall to 24200 zones after which it recovered in the second half of the session. It formed a small bodied Bearish candle on daily frame with longer lower shadow indicating smart buying at dips but absence of follow up. Now it has to hold above 24300 zones to extend the move towards 24500 and 24650 zones whereas supports are placed at 24200 then 24100 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL.
India VIX was down by 2.98% from 14.43 to 14 levels. Volatility cooled off after inching higher in the entire week.
On option front, Maximum Call OI is at 24500 then 24300 strike while Maximum Put OI is at 24000 then 24300 strike. Call writing is seen at 24300 then 24400 strike while Put writing is seen at 24300 then 24200 strike. Option data suggests a broader trading range in between 24000 to 24600 zones while an immediate range between 24200 to 24400 levels.
Bank Nifty
On the Bank Nifty outlook, Taparia added, “Bank Nifty Index opened on a positive note but failed to sustain at higher levels and drifted lower in the first half of the session. In the post noon session it witnessed smart recovery and recouped all its intraday losses. It formed a small bodied candle with longer lower shadow which is indicating support based buying. The index took support at its 20 DEMA and closed with the gains of around 80 points. Now it has to continue to hold above 52100 zones for an up move towards 52500 then 52700 levels while a hold below the same could see some weakness towards 51900 then 51750 zones.”
Chandan Taparia has recommended three stocks to buy tomorrow, July 12. According to him, these stocks – ITC, ONGC, PFC – are technically placed to see a decent upmove.
Stocks to buy
ITC: Buy at ₹458 | Target Price: ₹500 | Stop Loss: ₹440
ITC has given falling supply trend line breakout on weekly chart which is formed by connecting swing highs of 483, 466 and 444 levels. It is forming higher highs – higher lows from past four trading sessions and supports are gradually shifting higher.
ONGC: Buy at ₹305 | Target Price: ₹330 | Stop Loss: ₹292
ONGC has given consolidation breakout on weekly chart which has bullish implications. Breakout is supported by surge in volumes and it has given highest daily close every which may take prices higher.
PFC: Buy at ₹570 | Target Price: ₹600 | Stop Loss: ₹555
PFC is in overall uptrend and holding the gains at higher zones. Every small decline is being bought into and it has given range breakout on daily chart.
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.
