1 hour ago
Nifty 50 outlook
The Nifty index opened on a positive note and after an initial dip towards the 25,870 zone it inched higher in a slow and steady manner towards the 26,000 mark. However, in the second half of the session index witnessed some profit booking near the 26,000 zone which limited further upside. Despite the mild pullback, the buy on dips trend remained intact. On the daily chart, Nifty formed a doji candle highlighting a tug of war between bulls and bears while the broader structure continues to maintain a higher high – higher low formation. Now it has to hold above 25,800 zones for an up move towards 26,100 then 26,250 zones while supports are shifting higher at 25,800 then 25,700 zones. On option front, Maximum Call OI is at 26,000 then 26,500 strike while Maximum Put OI is at 26,000 then 25,900 strike. Call writing is seen at 26,000 then 26,500 strike while Put writing is seen at 26,000 then 25,900 strike. Option data suggests a broader trading range in between 25,400 to 26,400 zones while an immediate range between 25,700 to 26,200 levels.
Bank Nifty
Bank Nifty index opened marginally higher near 60,750 zones but it remained consolidative in narrow range of 200 points for entire trading session. It formed an inside bar pattern on daily scale as buying is visible at lower zones but momentum is missing at higher levels. Rate sensitive index is consolidating from last few sessions but holding well above its 10 DEMA. Now it has to hold above 60,500 zones for an up move towards 61,000 then 61,250 zones while on the downside support is seen at 60,500 then 60,250 levels.
Buy BAJAJ AUTO | CMP 9774 | SL 9500 | TGT 10300
Stock has bounced up from its 20 DEMA support zones with a strong bodied bullish candle. The MACD indicator has given a bullish crossover to confirm the positive momentum.
Buy TATASTEEL | CMP 208 | SL 200 | TGT 222
Stock is in an overall uptrend and is respecting its 20 DEMA support zones with slight dips being bought into. The ADX line is rising which confirms the strength of bullish trend.
Buy DMART | CMP 4002 | SL 3870 | TGT 4230
Stock has reversed up from its major support zones with higher than average traded volumes. The RSI indicator is rising which confirms the bullish momentum.
Disclaimer: This article is by Chandan Taparia, head of derivatives & technicals, wealth management, Motilal Oswal Financial Services. Views expressed are his own.
