Indian Markets Set for Positive Trading Day Amidst Global Optimism
The Indian stock market is poised to experience an upward trend on Tuesday, buoyed by favorable global cues that emerged in the previous trading sessions. Analysts are optimistic about the market’s direction as the Nifty futures demonstrated substantial gains, closing at 23,720, a notable rise of 1.45% on Monday.
Nifty Futures and Volatility Metrics
The trading day on Monday saw the India VIX, a key indicator of market volatility, increase by nearly 9%, concluding at 13.70. This rise in volatility comes as traders navigate through a market that has shown resilience amid global uncertainties. Analysts remain focused on the options front, where the highest Call Open Interest (OI) is situated at the 24,000 strike, closely followed by the 24,500 strike. On the other hand, the maximum Put OI stands at the 23,000 strike, with additional interest at the 23,500 strike.
Moreover, there has been significant call writing activity observed at the 24,200 and 24,400 strike levels, while put writing has gained traction at the 23,500 and 23,600 strikes. Chandan Taparia, a Derivatives Analyst at Motilal Oswal Financial Services, noted that the options data shows a broader trading range expected between 23,000 and 24,000, with immediate support and resistance levels hovering between 23,400 and 23,800. Bullish Candle Formation Indicates Potential Growth
The Nifty50 index displayed a bullish candle on the daily chart for Monday, positioning itself above all short-term moving averages. Taparia commented on the importance of the 23,500 zone, indicating that for the Nifty to maintain its upward trajectory towards the 23,800 and eventually 24,000, it must sustain levels above this threshold. Support levels are gradually shifting higher, setting a new foundation at 23,500 and 23,333. Stock Recommendations for Traders
Experts have offered several stock recommendations for traders with a short-term outlook. Ajit Mishra, SVP of Technical Research at Religare Broking Ltd, has highlighted several potential buy opportunities:
- Bajaj Finserv: Target of Rs 1990 with a stop loss at Rs 1840
- Bharti Airtel: Target of Rs 1800 with a stop loss at Rs 1680
- Divi’s Laboratories: Target of Rs 6300 with a stop loss at Rs 5720
- Vedanta: Target of Rs 492 with a stop loss at Rs 464
Nooresh Merani, an independent Technical Analyst, also provided insights into other promising stocks:
- Concor: Buy with a target of Rs 780 and a stop loss at Rs 700
- Supreme Industries: Buy with a target of Rs 3800 and a stop loss at Rs 3480
- Godrej Agro: Buy with a target of Rs 900 and a stop loss at Rs 750
Investment Disclaimer
It is important to note that the recommendations, suggestions, and opinions voiced by these experts represent their own views and do not reflect the positions or opinions of the Economic Times or other financial publications.
As traders prepare for the day’s trading, the optimistic sentiment in the Indian stock market, paired with the strategic guidance from analysts, could pave the way for a fruitful session ahead.
Share this article:
