Indian Equity Market: India’s benchmark indices, Nifty and Sensex, ended the trading session flat on Monday. The Sensex opened at 79,915, down from the previous close of 79,996.60, and remained in negative territory for most of the session. The index ultimately ended at 79,960.38, down 36 points or 0.05 percent. Meanwhile, the Nifty 50 opened at 24,329.45, up slightly from the previous close of 24,323.85, but ended the day down 3 points at 24,320.55.
“Nifty index started on a positive note and recovered to 24344 zone after earlier decline and remained in a narrow range of 100 points throughout the session. On the daily chart it formed a doji like candlestick and ended almost sideways. The index remains in a narrow range from the past few sessions, but buying continues at the lower zones. It now needs to sustain above 24250 zone and extend the move towards 24500 and 24600 zones, while support lies at 24200 and then 24050 zones,” said Chandan Taparia, head – equity derivatives & technicals, brokerage & distribution, MOFSL.
India VIX increased by 7.09% from 12.70 to 13.60 levels. Volatility increased marginally after declining overall last week.
On the options front, maximum call OI is at 24500 and then 24300 strikes while maximum put OI is at 24000 and then 24200 strikes. Call writing is seen at 24300 and then 24450 strikes while put writing is seen at 24300 and then 24000 strikes. Options data suggests a wider trading range between 24000 to 24500 zone with the immediate range being 24200 to 24450 levels.
Bank Nifty
Commenting on the outlook for Bank Nifty, Taparia further added, “Bank Nifty index opened lower and slowly moved towards 52250 zone but traded with a negative bias throughout the day and lost momentum. On the daily chart, it formed a small bearish candle similar to a doji indicating indecisiveness in the market. Now, it needs to sustain above 52200 zone to rally towards 52650 and then 52750 levels while sustaining below the same level could turn bearish towards 52000 and then 51900 zone.”
Chandan Taparia has recommended three stocks to buy tomorrow, July 9. He says these stocks — BHEL, Chambal Fertilisers and GAIL — are technically poised for substantial upside.
Stocks to buy
BHEL: Buy at ₹328 | Target Price: ₹350 | Stop Loss: ₹318
BHEL has made a range breakout on the weekly chart and is trading above the range. On the daily chart, it has formed a strong bullish candlestick and is gradually trending upwards towards support.
Chambal Fertilizer: Buy at ₹534 | Target Price: ₹520 | Stop Loss: ₹565
CHAMBEL FERTILIZERS showed an inside bar breakout on the daily chart and a narrow range breakout on the weekly chart. Fertilizer stocks are seeing buying across the board and volumes and deliveries are surging, which could support a continued upside.
GAIL: Buy at ₹230 | Target Price: ₹245 | Stop Loss: ₹222
GAIL is showing a cup-and-handle breakout on the daily chart, breaking out of the range of the past five weeks. The mechanical indicator RSI is showing a bullish crossover and is fully respecting the 20 DEMA.
Disclaimer: The views and recommendations provided in this analysis are those of the individual analysts or brokerage firms and not those of Mint. As market conditions change rapidly and individual circumstances may differ, investors are strongly advised to consult with a qualified professional before making any investment decisions.
