The Indian stock market is likely to see a strong opening on Tuesday, following a rally in global markets amid signs of de-escalating US-Iran war. The trends on Gift Nifty also signal a gap-up start for the frontline indices, Nifty 50 and Sensex today.
In the previous session, the Indian stock market ended sharply lower in the previous session, amid worries over the escalating US-Iran war, with the benchmark Nifty 50 closing below 22,600 level.
The tanked 1,836.57 points, or 2.46%, to close at 72,696.39, while the Nifty 50 settled 601.85 points, or 2.60%, lower at 22,512.65.
On the Nifty options front, Chandan Taparia Head Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services said that the maximum Call Open Interest (OI) is at 23,000 then 22,700 strike, while maximum Put OI is at 22,000 then 22,500 strike.
“Call writing is seen at 23,000 then 22,700 strike, while Put writing is seen at 22,500 then 22,600 strike. Option data suggests a broader trading range in between 22,000 to 23,000 zones while an immediate range between 22,200 to 22,700 levels,” said Taparia.
Nifty 50 Outlook
Nifty 50 index formed a bearish candle on the daily frame and has been making lower highs from the last three sessions.
“Now, till holds below 22,650, weakness could be seen towards 22,300 then 22,000 zones, while hurdles have shifted lower to 22,850 then 23,000 zones,” said Taparia.
Bank Nifty Outlook
Bank Nifty index slumped 1,989.30 points, or 3.72%, to close at 51,437.75 on Monday, forming a bearish candle on the daily scale.
“Now, till index holds below 51,750, weakness could be seen towards 51,000 then 50,750 levels, while on the upside, hurdle is seen at 51,750 then 52,000 levels,” said Taparia.
Stocks to buy or sell
Chandan Taparia has recommended one stock to buy today, March 25, and two stocks to sell. Taparia recommends buying shares today. On the other hand, he recommends selling SRF and (HAL) stock futures.
Tech Mahindra | Buy | Target Price: ₹1,465 | Stop Loss: ₹1,340
Tech Mahindra share price has formed a base around its major support zones with higher than average traded volumes. The RSI momentum indicator has exited its oversold zone to confirm the price action, said Taparia.
He recommends buying Tech Mahindra shares for a target price of ₹1,465 apiece, while maintaining a stop loss at ₹1,340 level.
SRF | Sell | Target Price: ₹2,260 | Stop Loss: ₹2450
SRF share price has broken down from a consolidation zone with a large bearish candle and higher than average traded volumes. The MACD line is declining which confirms the negative momentum.
Taparia suggests selling 30th March Futures for a target price of ₹2,260, and keeping a stop loss of ₹2,450.
HAL | Sell | Target Price: ₹3,395 | Stop Loss: ₹3,720
HAL share price is in an overall downtrend and is respecting its 20 DEMA resistance zone with slight rises being sold into. The ADX line is rising which confirms the strength of the downtrend, said Taparia.
He recommends selling HAL 30th March Futures for a target price of ₹3,395 apiece, and maintaining a stop loss at ₹3,720 level.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.