Indian Markets Expected to Consolidate Amid Global Positivity
As the Indian market approaches Thursday’s trading session, analysts anticipate a period of consolidation, influenced by a favorable environment in global markets. On Wednesday, the Nifty futures index experienced a slight downturn, closing at 22,527, marking a loss of 0.17%. Concurrently, the India VIX, which measures market volatility, saw a 2.7% decrease to settle at 13.69, indicating a potential easing of market anxiety among investors.
Options Market Insights
Delving into the options data reveals crucial insights into market sentiment and potential trading ranges. The highest Open Interest (OI) for Call options is recorded at the 23,000 and 22,500 strike levels. Conversely, significant Put OI is observed at 22,300 and 22,400 strikes. Analysts noted active Call writing at 22,600 and 22,500 strikes, while Put writing is concentrated at 22,300 and 22,400 strikes.
Chandan Taparia, an analyst with Motilal Oswal Financial Services Limited, suggests that the options data outlines a broader trading range expected between the 21,800 to 22,800 zones, with a more immediate range confined to 22,200 to 22,600 levels. He also pointed out that the Nifty formed a bearish candle on the daily chart on Wednesday, characterized by a longer lower shadow, suggesting that support-based buying remains operative at lower price levels.
Nifty 50’s Critical Levels
Taparia emphasized that for the Nifty50 index to initiate an upward movement, it needs to maintain levels above 22,330. If successful, it could set sights on climbing towards 22,650 and subsequently 22,800. On the downside, key support levels are expected at 22,300 and 22,222, providing potential safety nets for traders.
Stock Recommendations for Short-Term Trading
As investors look for opportunities, industry experts have compiled a list of stocks from the Futures and Options (F&O) segment, along with suggestions from the cash market for those with a short-term trading horizon.
Rajesh Palviya, VP of Technical & Derivative Research at Axis Securities, recommends:
- Narayana Hrudayalaya: Buy | Target: ₹1,785 | Stop Loss: ₹1,513
- Kaveri Seed Company: Buy | Target: ₹1,213 | Stop Loss: ₹1,015
- Avanti Feed: Buy | Target: ₹985 | Stop Loss: ₹770
Kunal Bothra, a market expert, suggests:
- 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
Nooresh Merani, an independent technical analyst, recommends:
- 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
It is important to note that the recommendations and opinions provided by these experts reflect their personal views and do not necessarily represent the perspective of the Economic Times or Smart Money Mindset. Traders are encouraged to exercise caution and carry out their own due diligence before making investment decisions.
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