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Nifty Index Outlook
The Nifty 50 index opened lower on Tuesday, influenced by subdued global market sentiment. It trended downwards for most of the trading session before consolidating near the close, ultimately settling with a loss of approximately 70 points. The index formed a small-bodied candle on the daily chart, breaking its four-session pattern of higher highs and higher lows.
To resume an upward trajectory, the Nifty must now decisively cross and sustain levels above 26,200. This could pave the way for advances towards 26,350 and 26,500. Immediate support is positioned at 26,050, followed by 25,950. Option data indicates maximum call open interest concentrated at the 26,200 and 26,500 strikes, while significant put open interest lies at 26,000 and 26,200. Option writing activity is observed at the 26,200 and 26,500 call strikes and the 25,700 and 26,200 put strikes. This data suggests a broad trading range between 25,800 and 26,600, with an immediate range anticipated between 26,000 and 26,400.
Nifty Bank Performance
The Nifty Bank index commenced Tuesday's session on a negative note near 59,950. However, it experienced a swift recovery from lower levels, reaching approximately 60,300 within the first hour. Subsequently, the index engaged in consolidation within a narrow 200-point band between 60,000 and 60,200.
It registered a small-bodied candle on the daily scale, indicating buying interest at dips but a lack of strong momentum at higher price points. For a bullish move, the index needs to hold above the 60,000 mark, targeting 60,437 and then 60,750. Downside support is anticipated at 59,750, with further support at 59,500.
Chandan Taparia's Stock Recommendations
Chandan Taparia, Head of Derivatives & Technicals at Motilal Oswal Financial Services, has identified three stocks for potential gains:
TATA Consumer Products is recommended for purchase at its current price of ₹1,210, with a stop loss set at ₹1,175 and a target price of ₹1,265. The stock has shown a bullish range breakout on a strong candle and is finding support near its 50 Double Exponential Moving Average (DEMA). The Relative Strength Index (RSI) indicator is also positioned favorably, suggesting bullish momentum.
Max Financial Services is advised for buying at ₹1,731, with a stop loss at ₹1,665 and a target of ₹1,885. The share price has breached a trendline, supported by higher-than-average trading volumes. The Moving Average Convergence and Divergence (MACD) indicator has generated a bullish crossover, confirming upward momentum.
IndusInd Bank is a buy recommendation at ₹914, with a stop loss at ₹875 and a target price of ₹995. The stock has surpassed its resistance zones and the 200 Double Exponential Moving Average (DEMA), accompanied by a surge in trading volume. The Average Directional Index (ADX) line is trending upward, indicating strength in the bullish reversal.