Indian stock market benchmarks, the Sensex and the Nifty 50, extended their losses for the fifth consecutive session on Thursday, July 25, influenced by weak global cues. The Sensex closed 109 points, or 0.14%, lower at 80,039.80, while the Nifty 50 ended at 24,406.10, down 7 points, or 0.03%.
“Nifty index opened gap down by 180 points but recovered right from the start of the session. It took support at 24200 zones to recoup its intraday losses and crossed 24400 levels. It remained positive to range bound in the second half of the session and managed to close above 24400 as bulls were active to absorb any minor dip. It formed a Bullish candle on daily frame but continues forming lower highs from the last four sessions. Now it has to hold 24350 zones for an up move towards 24550 and 24700 zones whereas supports are placed at 24200 then 24100 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL.
India VIX was up by 6.38% from 11.76 to 12.51 levels. Volatility has moved higher after cooling off from the last two sessions but overall lower VIX supports the bullish stance in the market.
On option front, Maximum Call OI is at 25000 then 25500 strike while Maximum Put OI is at 24000 then 23000 strike. Call writing is seen at 25500 then 25000 strike while Put writing is seen at 23000 then 24000 strike. Option data suggests a broader trading range in between 24000 to 24800 zones while an immediate range between 24200 to 24600 levels.
Bank Nifty
On the Bank Nifty outlook, Taparia added, “Bank Nifty Index opened gap down by more than 500 points and drifted lower towards 50550 zones in the first half of the session. Later the Index remained consolidative at the lower band in between 50600 to 50900 zones and formed a small bodied candle on daily scale. Index has been making lower top – lower bottom from the last few sessions and it ended in losses near 50900 levels. Now till it holds below 51250 zones some weakness could be seen towards 50500 then 50250 levels while on the upside hurdle is seen at 51250 then 51500 zones.”
Chandan Taparia has recommended three stocks to buy today, July 23. According to him, these stocks – Zydus Lifesciences, Federal Bank and Indian Oil Corporation (IOC) – are technically placed to see a decent upmove.
Stocks to buy
Zydus Lifesciences: Buy at ₹1205 | Target Price: ₹1300 | Stop Loss: ₹1160
Zydus Lifesciences is in overall uptrend and holding gains at higher zones. It is perfectly respecting 50 DEMA and gave trend line breakout on daily chart. It has formed a strong bullish candle on daily scale and gave highest daily close ever which may support the ongoing rally.
Federal bank: Buy at ₹204 | Target Price: ₹225 | Stop Loss: ₹195
Federal bank is clearly outperforming within Pvt Banks space and trading at life highs. It is forming higher top-higher bottom from past four weeks and supports are gradually shifting higher.
Indian Oil Corporation: Buy at ₹176 | Target Price: ₹190 | Stop Loss: ₹168
IOC has given range breakout on weekly chart and formed a bullish marubozu candle on daily scale. Buying is visible across OMC’s space which has bullish implications.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.