Indian stock market: Market benchmarks, the Sensex and the Nifty 50, reached new closing highs, marking their fifth consecutive day of gains. The Sensex set a new all-time high of 82,129.49, while the Nifty 50 hit a new peak of 25,078.30 during the session.
“Nifty index opened positive above 25k marks and hit a fresh all time high of 25078 zones. It took 24 sessions from 24k to 25k which marks the 3rd fastest 1000 point rally in the Index. It moved in a small range of 120 points throughout the day and closed on the higher note with gains of around 60 points. It formed a small bodied candle on daily frame and has been making higher lows from the last five sessions. Now it has to hold 24950 zones for an up move towards 25150 and 25250 zones whereas supports are placed at 24900 then 24800 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL.
India VIX was down 2.38% from 13.25 to 12.94 levels. Overall lower volatility supports the bullish stance in the market.
On option front, Maximum Call OI is at 25000 then 26000 strike while Maximum Put OI is at 25000 then 24000 strike. Call writing is seen at 26000 then 25000 strike while Put writing is seen at 25000 then 24000 strike. Option data suggests a broader trading range in between 24700 to 25400 zones while an immediate range between 24900 to 25200 levels.
Bank Nifty
On the Bank Nifty outlook, Taparia further added, “Bank Nifty Index opened on a positive note but failed to sustain at higher levels and slowly drifted towards 51500 zones. It formed a small bodied candle on the daily scale which is indicating momentum is missing at higher levels but support base buying is visible. The Index is stuck in a broader range of 800 points. Now it has to continue to hold above 51250 zones for a bounce towards 52000 then 52200 levels while on the downside support is seen at 51250 then 51000 zones.”
Chandan Taparia has recommended three stocks to buy tomorrow, August 2. According to him, these stocks – TVS Motor, Power Grid and NTPC – are technically placed to see a decent upmove.
Stocks to buy
TVS Motor: Buy at ₹2584 | Target Price: ₹2720 | Stop Loss: ₹2525
TVS Motor is in overall uptrend as every small decline is being bought into. It has retested breakout on daily chart and inched higher which has bullish implications.
Power Grid: Buy at ₹361 | Target Price: ₹380 | Stop Loss: ₹350
Powergrid has given trend line breakout on daily chart with noticeable volumes. Buying is visible across CPSE space which may support the ongoing up move.
NTPC: Buy at ₹423 | Target Price: ₹440 | Stop Loss: ₹412
NTPC is continuously making higher top-higher bottom formation from past seven trading sessions and gave highest daily close ever. It is trading above all crucial moving averages with base shifting upwards.
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.
