Stock market today: Domestic benchmark indices reversed their early gains on Tuesday, 22 September, weighed down by IT stocks amid concerns over demand and earnings. The weakness in technology shares offset positive sentiment from a fifth straight session of oil price declines, ahead of potential US-Iran talks at the United Nations General Assembly this week.
The Nifty 50 declined 0.36% to 23,329, while the BSE Sensex fell 0.44% to 74,529.08.
Ahead of the closing auction, which coincided with the NSE’s weekly derivatives expiry, the Nifty was down 0.28%, while the Sensex slipped 0.27%.
Market participants said the regulator’s proposals earlier this month to overhaul derivatives settlement could help curb volatility typically seen around expiry days.
Market Outlook by Jay Thakkar, Vice President & Head of Derivatives and Quant Research, ICICI Securities
Nifty 50
Nifty 50 has closed in the negative territory in the last trading session and with that it ended in red after 4 consecutive positive close. At 25,500 strike there was the highest call base for the weekly expiry and the Nifty 50 reacted to it and closed below 23,400 levels.
Now, ahead of the monthly settlement the cumulative put base considering the October series as well, then it is at 23,000 strikes, hence it becomes a very important support. On the upside, 24,000 strike has the highest call base, hence that becomes the critical resistance.
So, the range for the Index is 23,000-24,000 and beyond this there will be further direction for the Index. The international crude oil prices as well as India VIX both have come down that is positive for the Equity markets, however, if the deal gets confirmed then there will be further upward momentum with higher probability.
Stocks To Buy in the near-term – Jay Thakkar
Jay Thakkar of ICICI Securities recommends Glenmark futures, Bharat Forge futures, and Varun Beverages futures.
Buy Glenmark Fut in the range of ₹2,450-2,465; stop loss below ₹2,415; Targets ₹2,520 and ₹2,550
The Nifty Pharma Index is trading with a positive bias, and so is this stock. It has been trending higher and, overall, has seen long additions so far; hence, the stock is positive in the near term. As far as the options data is concerned, 2,500 and 2,400 have the highest call base, and the stock is trading well above 2,400, which is positive. The stock is also trading well above 2,400, which is the max pain level, hence that becomes the support in the short term.
Buy Bharat Forge fut in the range of ₹1,990-2,010; stop loss below ₹1,950; Targets ₹2,070 and ₹2,100
Bharat Forge has witnessed some short covering in the recent up move, and from hereon it is expected to inch higher on account of short covering as well as call unwinding. There have been significant put additions at the lower levels from 1,900-2,000, which will act as support. On the upside, only the 2,000 call has the highest OI, beyond which there will be a swift move, and the stock has closed above the same. Even the max pain is at 2,000 levels, above it means a higher possibility of an upside.
Buy Varun Beverages fut in the range of ₹425-435; stop loss ₹410; Targets ₹455-470
The stock has witnessed short covering recently, as prices have gone up, the open interest has fallen. There have been significant put additions as well, and with that, the 400-420 range has become good support, whereas 450 has the highest call base, so it will at least inch towards those levels.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
