Indian Stock Market Expected to Trade Higher on Monday
The Indian stock market is anticipated to open on a positive note this Monday, buoyed by favorable global market trends. On Friday, the Nifty futures closed up by 0.78%, reaching the 23,382 mark. This upward movement reflects a surge in investor sentiment, setting the stage for a potentially strong trading session ahead.
Market Analysis
The India VIX, a measure of market volatility, decreased by 0.2%, finishing the previous trading session at 12.58. This decline typically signals a calming market landscape, further contributing to a positive outlook for investors.
In the options market, significant positions have been established, indicating traders’ expectations for possible price movements. The maximum Call Open Interest (OI)—a measure reflecting the number of outstanding call options—was observed at the 24,000 strike price, followed closely by the 24,100 strike. On the flip side, the maximum Put OI was located at the 23,000 and 23,200 strike levels.
Call writing was prominently noted at the 23,600 and 23,700 strikes, while Put writing was seen at the 23,300 and 23,200 levels. According to Chandan Taparia, an Analyst specializing in derivatives at Motilal Oswal Financial Services, the options data suggests that the Nifty index could trade within a broader range of 22,900 to 23,800, with a more immediate focus between 23,200 and 23,600. ### Bullish Momentum Maintained
Taparia highlighted that the Nifty has formed a bullish Marubozu candle on the weekly chart, which is indicative of continued strong bullish momentum, as it has consistently formed higher highs and higher lows throughout the past five trading sessions. He emphasized that for the Nifty to sustain its upward trajectory, it needs to stay above the 23,200 level, with potential upward targets set at 23,500 and 23,700. He also noted that support levels are shifting upward to 23,200 and 23,000. ### Stock Recommendations from Experts
In light of the positive market outlook, several brokerage firms have shared investment recommendations. Here’s a summary of notable suggestions from experts contributing to the ETNow platform:
Aakash Hindocha, Technical Analyst at Nuvama Wealth:
- APL Apollo Tubes: Buy | Target: Rs 1,625 | Stop Loss: Rs 1,475
- Amara Raja Batteries: Buy | Target: Rs 1,220 | Stop Loss: Rs 1,011
- Bharti Airtel: Buy | Target: Rs 1,825 | Stop Loss: Rs 1,690
Kunal Bothra, Market Expert:
- NTPC: Buy | Target: Rs 366 | Stop Loss: Rs 344
- AB Capital: Buy | Target: Rs 195 | Stop Loss: Rs 180
- BSE: Buy | Target: Rs 5,000 | Stop Loss: Rs 4,550
Nooresh Merani, Independent Technical Analyst:
- Axis Bank: Buy | Target: Rs 1,150 | Stop Loss: Rs 1,050
- NHPC: Buy | Target: Rs 95 | Stop Loss: Rs 82
- Nykaa: Buy | Target: Rs 190 | Stop Loss: Rs 167
Conclusion
As the Indian market gears up for trading on Monday, analysts and investors are keenly observing key levels and trends that may dictate market movements in the near term. With a robust global backdrop and key technical indicators signaling bullish sentiment, market participants are optimistic about potential gains.
Disclaimer: The recommendations and opinions expressed in this article represent the views of the respective experts and do not necessarily reflect the views of The Economic Times or Smart Money Mindset.
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