Indian Market Expected to Consolidate Amid Positive Global Signals
As trading resumes on Thursday, the Indian equity market is anticipated to undergo consolidation, influenced by positive cues emerging from global markets. On Wednesday, the Nifty futures experienced a slight dip, closing down by 0.17% at the 22,527 mark. Meanwhile, the India VIX—a measure of market volatility—declined by 2.7%, closing at 13.69. ### Market Analysis
In relation to options trading, data indicates that the maximum Call Open Interest (OI) is concentrated at the 23,000 and 22,500 strikes, while the maximum Put OI is observed at the 22,300 and 22,400 levels. Analysts note that Call writing is prevalent around the 22,600 and 22,500 strikes, whereas Put writing is evident at the 22,300 and 22,400 levels.
Chandan Taparia, an Analyst specializing in Derivatives at Motilal Oswal Financial Services Limited, provided insights into the current market dynamics. "Options data suggests a broader trading range from 21,800 to 22,800, with an immediate range concentrated between 22,200 and 22,600," Taparia stated. He added that the Nifty formed a bearish candle on the daily frame, indicating that support-based buying remains robust at lower levels.
Key Levels to Watch
According to Taparia, for the Nifty50 to embark on an upward trend, it must sustain above the 22,330 mark. If this level is maintained, potential upward movements towards 22,650 and eventually 22,800 could be on the horizon. Conversely, immediate support can be found at the 22,300 and 22,222 levels.
Short-Term Trading Recommendations
For traders operating within a short-term horizon, several experts have curated a list of recommended stocks from both the Futures & Options (F&O) basket and the cash market:
Recommendations from Rajesh Palviya, VP-Technical & Derivative Research, Axis Securities:
- Narayana Hrudayalaya: Buy with a target of ₹1,785 and a stop loss at ₹1,513.
- Kaveri Seed Company: Buy with a target of ₹1,213 and a stop loss at ₹1,015.
- Avanti Feed: Buy with a target of ₹985 and a stop loss at ₹770. #### Recommendations from Market Expert Kunal Bothra:
- Bajaj Finance: Buy with a target of ₹8,750 and a stop loss at ₹8,350.
- Jio Financial Services: Buy with a target of ₹234 and a stop loss at ₹221.
- Hikal: Buy with a target of ₹406 and a stop loss at ₹383. #### Recommendations from Independent Technical Analyst Nooresh Merani:
- ICICI Bank: Buy with a target of ₹1,300 and a stop loss at ₹1,225.
- GMR Airport: Buy with a target of ₹85 and a stop loss at ₹72.
- AB Capital: Buy with a target of ₹175 and a stop loss at ₹158. ### Disclaimer
It is important to note that the recommendations, suggestions, and opinions expressed by the experts are their own and do not necessarily reflect the views of any financial institution or publication.
Conclusion
In summary, as the Indian stock market prepares for the trading session, eyes will be on key price levels and stock recommendations as investors navigate through the ongoing volatility. Traders are advised to stay informed and consider expert analyses before making investment decisions.
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