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Market Alert: Nifty Set for Lower Trading Amidst Global Trends – Stock Picks and Analysis

March 12, 2025
Smart Money

Indian Equity Market Expected to Open Lower Amid Global Uncertainty

The Indian stock market is anticipated to decline on Tuesday, following tepid cues from international markets. The Nifty futures ended the previous trading session down by 0.63%, closing at 22,507 points on Monday, amid a broader atmosphere of uncertainty.

Market Indicators and Sentiments

In a notable shift, the India Volatility Index (VIX) saw an increase of nearly 4%, closing at 13.98. This uptick in the VIX, which measures market risk and investor sentiment, indicates that traders are becoming more cautious.

Options Data Insights

In terms of options activity, analysts observed significant positioning. The maximum Call Open Interest (OI) was concentrated at the 23,000 and 22,700 strikes, signaling resistance levels for the Nifty index. Meanwhile, maximum Put OI was found at 22,000 and 22,500 strikes, which suggest potential support ranges.

Call writing has been notably observed at the 22,700 and 22,600 strikes, while Put writing appears to be centered at the 22,000 and 22,500 strikes. Chandan Taparia, a derivatives analyst at Motilal Oswal Financial Services, explained that options data indicates a broader trading band between 22,000 and 23,000, with a more immediate focus on a narrower range of 22,200 to 22,700 levels.

Current Market Trends

Taparia pointed out that the Nifty formed a bearish candle on Monday, characterized by a longer upper shadow, which indicates selling pressure at higher price levels. He mentioned that if the Nifty can surpass and maintain a position above the 22,500 mark, it could lead to a potential bounce-back towards the 22,650 to 22,800 range. Conversely, immediate support is seen around 22,350 and further down at 22,222. ### Analyst Recommendations for Traders

For investors with a short-term trading focus, several experts have made specific stock recommendations:

Ajit Mishra from Religare Broking Ltd advises the following:

  • Chambal Fertilizers: Buy with a target of ₹620 and a stop loss at ₹555.
  • Power Grid: Buy with a target of ₹288 and a stop loss at ₹262.
  • SRF: Buy with a target of ₹3,280 and a stop loss at ₹2,820.
  • Titan Company: Sell with a target of ₹2,810 and a stop loss at ₹3,140. Kunal Bothra, a market expert, suggests:
  • Asian Paints: Buy with a target of ₹2,600 and a stop loss at ₹2,150.
  • Zomato: Sell with a target of ₹205 and a stop loss at ₹222.
  • Castrol India: Buy with a target of ₹250 and a stop loss at ₹224. Nooresh Merani, an independent analyst, highlights:
  • Dixon Technologies Ltd: Sell with a target of ₹12,000 and a stop loss at ₹13,500.
  • Power Grid: Buy with a target of ₹285 and a stop loss at ₹262.
  • Muthoot Finance: Buy with a target of ₹2,300 and a stop loss at ₹2,120. ### Conclusion

As investors navigate the volatility in the market, these insights and recommendations from experts may provide guidance. However, it is essential to note that the views and opinions shared by these analysts are their own and do not necessarily reflect the positions of the Economic Times or other financial institutions. Traders are encouraged to conduct their own research and consider personal risk factors before making investment decisions.

Investors should stay tuned to market movements as the Indian markets respond to both domestic and global economic cues in the coming days.