Indian Stock Market Anticipates Consolidation Amid Global Positivity
The Indian stock market is poised for consolidation on Thursday, following positive cues from global markets. On Wednesday, the Nifty futures closed in the negative, experiencing a loss of 0.17% to settle at 22,527 points. Meanwhile, the India Volatility Index (VIX) witnessed a decline of 2.7%, closing at 13.69, reflecting a slight easing in market volatility.
Options Insights
The options data provides critical insights into the market dynamics. The maximum Call Open Interest (OI) is concentrated at the 23,000 and 22,500 strike levels, indicating potential price resistance points. Conversely, the maximum Put OI is located at the 22,300 and 22,400 strikes, suggesting possible support levels.
Market analysts have observed significant call writing at the 22,600 and 22,500 strikes, while put writing has been identified at the 22,300 and 22,400 levels. Chandan Taparia, Analyst-Derivatives at Motilal Oswal Financial Services, noted that the data indicates a broader trading range anticipated between 21,800 and 22,800 levels, with an immediate range expected from 22,200 to 22,600. #### Technical Analysis
On Wednesday, the Nifty index formed a bearish candle on the daily chart, characterized by a longer lower shadow that signifies ongoing support-based buying at lower levels. For an upward momentum, Taparia emphasized the importance of the Nifty50 maintaining levels above 22,330. If this level is sustained, it may facilitate an upward movement towards 22,650 and then to 22,800. Key support levels, according to Taparia, lie at 22,300 and then at 22,222. #### Stock Recommendations
As traders prepare for the day ahead, a selection of stock recommendations has been compiled from various market experts for those with a short-term trading horizon.
Recommendations from Rajesh Palviya, VP-Technical & Derivative Research at Axis Securities:
- Narayana Hrudayalaya: Buy | Target: ₹1,785 | Stop Loss: ₹1,513
- Kaveri Seed Company: Buy | Target: ₹1,213 | Stop Loss: ₹1,015
- Avanti Feeds: Buy | Target: ₹985 | Stop Loss: ₹770
Recommendations from Kunal Bothra, Market Expert:
- Bajaj Finance: Buy | Target: ₹8,750 | Stop Loss: ₹8,350
- Jio Financial Services: Buy | Target: ₹234 | Stop Loss: ₹221
- Hikal: Buy | Target: ₹406 | Stop Loss: ₹383
Recommendations from Nooresh Merani, Independent Technical Analyst:
- ICICI Bank: Buy | Target: ₹1,300 | Stop Loss: ₹1,225
- GMR Airport: Buy | Target: ₹85 | Stop Loss: ₹72
- AB Capital: Buy | Target: ₹175 | Stop Loss: ₹158
Disclaimer: The recommendations, suggestions, views, and opinions provided by experts are their own and do not represent the views of the Economic Times.
As traders and investors navigate the market, careful attention to technical signals and expert analyses will be crucial in making informed decisions. The market’s response to global cues and domestic factors will shape the trading landscape in the coming sessions.
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