Stock Market Today: Following the global surge, domestic benchmark indices Sensex and Nifty 50 opened Monday’s trading session with gains. The Sensex rose 346.93 points or 0.43 per cent to reach 81,679.65 points, while the Nifty 50 index rose 108.45 points or 0.44 per cent to open at 24,943.30.
All indices on the NSE including Nifty Midcap, Nifty Small Cap and Nifty Next 50 opened higher in the market. Sectoral indices continued to rise and started the new week on a higher note.
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Among the biggest losers in the Nifty 50 list were Dr Reddy’s Laboratories, Tata Consumer Products, Power Grid and Bharti Airtel while the biggest gainers were NTPC, BPCL, ICICI Bank, IndusInd Bank and SBI.
According to Ruchit Jain, Principal Research Analyst at 5paisa, the August F&O series began with 57% long positions by FIIs and around 50% long positions by the client sector, creating room for fresh long positions at the start of the new series. With the uptrend now resumed, the momentum is likely to continue and the next resistance is likely to be seen near the retracement levels of this correction which are around 25,065 and 25,340. Conversely, 24,550-24,350 is considered as the immediate support zone on the downside.
Technical insights on the F&O market from Rupak De, Senior Technical Analyst, LKP Securities
Bank Nifty
The last expiry date for Bank Nifty was on Wednesday, July 24. On the daily chart of Bank Nifty, an outside day pattern has formed, suggesting a possible price upswing. Moreover, the index has reclaimed the 50-period exponential moving average. In the short term, the trend may undergo a bullish reversal. Going forward, a move above 51,500 could trigger a substantial upswing towards 52,500. On the downside, 51,000 is the support.
Open Interest Analysis: While there was a significant increase in open interest at 51,200 PUT and 50,800 PUT, CALL sellers added substantial positions at 52,200 and 51,300 strike prices on the first day of the current expiration. CALL open interest was seen up to 52,000 strike price, while PUT open interest was seen up to 51,000 price, indicating a wider market range. Open interest positions for both CALL and PUT are relatively similar for the July expiration.
Nifty 50
The last expiry date for Nifty 50 was on Thursday, July 25. Nifty 50 is experiencing a downward consolidation breakout on the daily chart, suggesting growing optimism. Continuous trading above the 21 EMA, a very short-term moving average, has given the index bulls the strength to take Nifty 50 to new highs amidst the weakness in global markets. The emergence of a sizeable green candlestick after a few insignificant candlesticks is a clear indication of a major bullish trend ahead. As long as the level remains above 24,500, the trend is likely to remain positive. At the upper end, the index may move towards 25,250.
Open Interest: Analysis: There was a significant increase in open interest in 24,500 CALL and 24,600 PUT, while CALL sellers added substantial positions at 25,100, 25,200 strike prices on the first day of the current expiration. CALL open interest was seen at up to 25,000 strike prices, while PUT open interest was seen at up to 24,500 prices, indicating a wider range in the market. PUT sellers were more active in the weekly expiration market compared to CALL buyers.
This week’s technical stock recommendations
Buy IDBI Bank at Rs 100. Target price is Rs 116 and stop loss is Rs 93.
The stock is showing a sideways trend breakout or range breakout on the daily chart. The stock is trading above the short term 14-day and 21-day moving averages. The RSI has made a bullish crossover on the multi-timeframe chart. The stock can be bought in the range of Rs 98-100 with a stop loss of Rs 93 and a potential target of Rs 116.
Buy Oberoi Realty Ltd for ₹1,782. Target price is ₹1,900. Stop loss is ₹1,669.
The stock price has risen after a piercing line pattern was formed on the daily chart. It has also reclaimed the 21 EMA on the daily chart. Moreover, the RSI(14) has formed a rounding bottom pattern. In the short term, the stock price may move towards Rs 1,900, but the support is at Rs 1,670.
Disclaimer: The views and recommendations expressed above are those of the individual analysts, experts and brokerage firms and not that of Mint. We recommend that you check with a certified professional before making any investment decisions.
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