Stock market news: The domestic benchmark indices, Nifty 50 and Sensex recorded their strongest weekly gains in six months on Friday, led by a rally in IT stocks following better-than-expected quarterly earnings. A selloff in global AI-related stocks also encouraged investors to seek value in other sectors.
The Nifty 50 climbed 2.8% over the week to 23,146.15, while the Sensex advanced 3.1% to 74,729.27, marking their best weekly performance since April 10. In Friday’s session, the Nifty gained 0.7%, while the Sensex rose 0.6%.
Chandan Taparia of Motilal Oswal Financial Services, has recommended buying Mphasis, Hindustan Aeronautics (HAL) and Indian Hotels Company. He has set a target price of ₹2,650 for Mphasis with a stop loss at ₹2,425. For HAL, the target is ₹5,260, with a stop loss at ₹4,840. Indian Hotels has a target price of ₹815 and a stop loss at ₹750.
On the Nifty options front, Chandan Taparia, Head Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services Ltd, said that the maximum call OI is at 23,100 then 23,500 strike, while maximum put OI is at 23,000 then 22,700 strike.
“Call writing is seen at 23,100 then 23,150 strike while Put writing is seen at 23,100 then 23,000 strike. Option data suggests a broader trading range in between 22,700 to 23,500 zones while an immediate range between 22,900 to 23,400 levels,” said Taparia.
Nifty 50 Outlook
Nifty 50 index opened on a positive note and witnessed volatile swings in the first hour before settling into a narrow range in the second half while firmly holding above 23,100 zones. The index closed near its upper band reflecting continued strength at higher levels. It formed a bullish candle on the daily frame while the weekly frame also formed a bullish candle as the index bounced from its crucial support zones and sustained its recovery at higher levels.
“Now it has to hold above 23,100 zones for an up move towards 23,250 then 23,350 zones, while support can be seen at 23,000 then 22,900 zones,” said Taparia.
Bank Nifty Outlook
Bank Nifty index opened on a positive note near 55,900 zones but failed to hold at higher zones and gradually drifted towards 55,500 zones in the first half of the session. Some recovery was seen from the lower levels but it remained consolidative in a narrow range of 250 points in the latter part of the session. It formed an Inside bar pattern on the daily scale and is holding above its 20 DEMA. On weekly scale it formed a small bullish candle with long lower shadow as buying is visible at lower levels.
“Now it has to hold above 55,750 zones for an up move towards 56,250 then 56,500 levels while on the downside support is seen at 55,500 then 55,250 zones,” the MOFSL analyst added.
Stocks to buy
Chandan Taparia has recommended three stocks to buy tomorrow. Taparia recommends buying Mphasis, Hindustan Aeronautics Ltd (HAL) and Indian Hotels Company shares.
Mphasis | Buy | Target Price: ₹2,650 | Stop Loss: ₹2,425
After the recent correction, the stock has resumed its uptrend and formed strong bullish candles on both the daily and weekly charts, indicating renewed buying momentum. It is now on the verge of a rounding-bottom breakout above the 2,525 zone, which could trigger the next leg of the up move. The overall IT sector is witnessing a strong recovery with renewed buying interest, providing a supportive backdrop for the stock.
HAL | Buy | Target Price: ₹5,260 | Stop Loss: ₹4,840
Stock has been forming higher tops and higher bottoms on the daily chart over the last four sessions and has also given a trendline breakout, indicating improving bullish momentum. It is trading above its short-term moving averages, highlighting sustained buying interest. Sustaining above the 4,950 zone could accelerate momentum towards the 5,100 zone and beyond.
Indian Hotels Company | Buy | Target Price: ₹815 | Stop Loss: ₹750
Stock has formed a strong base around its 200 DEMA and has witnessed a sharp bounce over the last few sessions indicating renewed buying interest. It has now given a one-year range breakout above the 750 level, signalling a significant improvement in its price structure. The stock has formed a bullish candle, while the RSI is also inching higher, further supporting the positive momentum. Sustaining above the breakout zone could trigger the next leg of the up move.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of the expert, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
