Stock market today: The key domestic indices, Nifty 50 and Sensex, are anticipated to open on a higher note this Monday as strong earnings from leading banks and optimistic global signals regarding reduced tensions between China and the U.S. enhance investor confidence.
As of 8:50 IST, Gift Nifty futures were showing a figure of 25,975.50 points, suggesting that the Nifty 50 is likely to start above its one-year high closing of 25,709.85 observed on Friday.
On Saturday, HDFC Bank and ICICI Bank, India’s leading private lenders, reported profits for the September quarter that exceeded expectations, along with improvements in their asset quality.
In contrast, Reliance Industries fell short of quarterly profit projections due to struggles in its core oil-to-chemicals division, although its revenue surpassed forecasts, as per reports.
Rupak De of LKP Securities, believes that Nifty 50 appears well-positioned for further upside, and a “buy-on-dips” approach could work effectively. De suggests three stocks to buy in the F&O segment today. Here’s what he says about the overall market.
Technical views by Rupak De, Senior Technical Analyst, LKP Securities on F&O market
The sentiment around Nifty 50 remains optimistic as the index broke out above its four-month consolidation range. On Friday, large-cap stocks took the lead, outperforming mid- and small-cap counters — a typical characteristic of an early bull market phase. Historically, large caps tend to spearhead the rally, with mid and small caps catching up later. Technically, Nifty 50 appears well-positioned for further upside, and a “buy-on-dips” approach could work effectively. On the downside, key support is placed at 25,500, while resistance is seen around 25,850–26,000. A decisive breakout above 25,710 might induce a rally towards 26,700 in the short term.
Open Interest Analysis: Significant additions were observed in open interest at the 25,700 PUT, while CALL writing was visible at the 25,900 and 26,000 strikes on Friday. The maximum CALL open interest stood at the 26,000 strike, while the highest PUT open interest was seen at 25,500, indicating a broad trading range for the market. For the current weekly expiry, CALL writers currently outnumber PUT writers.
Strategy: Sentiment is likely to remain strong in the short term.
Trade: Buy Nifty 50 20th Oct 25,700CE 90 TGT 130 SL 68
Buy HDFC Bank at ₹1,000 | Target: ₹1,050 | Stop-loss: ₹977
share price has moved higher after a consolidation breakout on the daily timeframe. Sentiment remains positive, with the price trading above the 21EMA — a key short-term moving average. The RSI indicator has given a double-bottom breakout, further supporting the bullish momentum. Based on the current technical setup, the stock appears poised for a decent short-term upside towards 1,050, while support on the lower end is placed at 977.
Buy M&M at ₹3,656 | Target: ₹3,900 | Stop-loss: ₹3,550
share price has witnessed a steady rally following a breakout from a range-bound movement on the daily timeframe. The 21EMA is positioned above the 50EMA, signifying a positive trend. The RSI is in a bullish crossover and rising on the daily chart, further confirming the momentum. Based on the current technical setup, the stock appears poised for a short-term upside towards 3,900, while support on the lower end is placed at ₹3,550.
Buy PG Electroplast at ₹586 | Target: ₹620 | Stop-loss: ₹570
share price has been consolidating after a sharp rise and continues to sustain above the 21EMA, suggesting a positive short-term trend. The hourly RSI is in a bullish crossover, setting a constructive tone for price momentum. In the near term, the stock is expected to remain strong, with the potential to move towards 620, while support on the lower end is placed at 570.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.