Indian Markets Expected to Trade Higher on Tuesday Amidst Positive Global Trends
Market Insights: Nifty Futures and Volatility Indices
The Indian stock market is poised for a positive opening on Tuesday, buoyed by uplifting cues from global markets. In yesterday’s trading session, Nifty futures experienced a decline of 0.67%, settling at 23,457 levels. Concurrently, the India VIX, which measures market volatility, rose by 5%, closing at 14.44.
Options Analysis: Trading Dynamics
On the options front, the sentiment indicates a substantial amount of trading activity. The maximum Call Open Interest (OI) is recorded at the 24,000 strike, followed closely by the 25,000 strike. In contrast, the maximum Put OI stands at the 22,500 strike, with the 23,000 strike also contributing to active trading. These observations indicate a broad trading range for the Nifty, with immediate support and resistance levels identified.
According to Chandan Taparia, Analyst-Derivatives at Motilal Oswal Financial Services Limited, market trends suggest a broader trading range between 22,800 and 23,800, with a narrower focus on 23,200 to 23,600. Taparia notes the formation of a bearish candle on the daily chart accompanied by a longer lower shadow, which signifies a potential pullback from established support zones.
Key Resistance Levels Ahead
In terms of critical price movements, Taparia emphasizes the necessity for Nifty to surpass and maintain levels above 23,450 to initiate an upward trend towards 23,550 and subsequently 23,700. Conversely, support levels are noted at 23,250 and 23,100. This can guide traders in establishing their positions for the upcoming sessions.
Stock Recommendations for Short-Term Traders
Financial analysts have compiled a list of stocks recommended for short-term trading, aiming to assist investors in navigating the current market climate.
Ajit Mishra, SVP – Technical Research, Religare Broking Ltd:
- Bharti Airtel: Buy | Target: ₹1,780 | Stop Loss: ₹1,650
- Wipro: Buy | Target: ₹334 | Stop Loss: ₹312
- DLF: Sell | Target: ₹695 | Stop Loss: ₹752
- LIC Housing Finance: Sell | Target: ₹544 | Stop Loss: ₹574
Nooresh Merani, Independent Technical Analyst:
- Bajaj Finance: Buy | Target: ₹8,700 | Stop Loss: ₹8,100
- SBI: Buy | Target: ₹770 | Stop Loss: ₹725
- UBL: Buy | Target: ₹2,180 | Stop Loss: ₹2,020
Kunal Bothra, Market Expert:
- Kotak Mahindra Bank: Buy | Target: ₹2,020 | Stop Loss: ₹1,925
- Berger Paints: Buy | Target: ₹500 | Stop Loss: ₹470
- Uno Minda: Buy | Target: ₹1,120 | Stop Loss: ₹1,036
Disclaimer: The recommendations, suggestions, views, and opinions provided by these experts are their own and do not necessarily represent the views of The Economic Times.
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Trending Stocks: Investors are encouraged to keep an eye on major stock movements including SBI, Axis Bank, HDFC Bank, Infosys, and Wipro as the market opens under positive global influences.
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