Indian equity markets rebounded on Thursday, 29 October, recovering from a recent slide as the US Federal Reserve kept interest rates unchanged, in line with expectations, while upbeat quarterly earnings lifted investor sentiment.
The Nifty 50 rose 1.1% to close at 22,936.75, while the BSE Sensex gained 1.2% to settle at 74,151.04.
The recovery followed a seven-session losing streak during which both benchmark indices declined by around 2%, falling in six of the seven sessions amid persistent concerns over elevated crude oil prices.
Chandan Taparia, Head of Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services, has recommended Kotak Mahindra Bank, Nykaa and Eternal as buy calls.
Taparia has set a target price of ₹485 for Kotak Mahindra Bank, with a stop loss at ₹445. For Nykaa, he has recommended a buy with a target of ₹373 and a stop loss of ₹340. Eternal is also a buy, with a target price of ₹357 and a stop loss of ₹326.
On the Nifty options front, Chandan Taparia, said the maximum call OI is at the 23,000 then 23,400 strike, while maximum put OI is at the 22,800 then 22,700 strike.
“Call writing is seen at 23,300 then 23,200 strike while Put writing is seen at 22,800 then 22,900 strike. Option data suggests a broader trading range in between 22,500 to 23,500 zones while an immediate range between 22,700 to 23,200 levels,” said Taparia.
Nifty 50 Outlook
Nifty 50 index opened on a flattish note and witnessed strong buying interest from the initial hour, lifting the index from the intraday low near 22,650 towards the 22,950 zones and above. Buying momentum remained strong throughout the session, helping the index sustain its upward move. The index finally broke out of its five-session range and closed above the same. It formed a large bullish candle on the daily chart, indicating a positive shift in market momentum and improving buying interest .
“Now it has to hold above 22,900 zones for an up move towards 23,100 then 23,200 zones while support can be seen at 22,800 then 22,700 zones,” the MOFSL analyst added.
Bank Nifty Outlook
Bank Nifty index opened marginally lower and drifted towards 54,000 zones in the initial part of the session. Strong buying interest emerged at lower levels which helped the index gradually move higher towards 55,000 zones. It managed to hold its gains and ended the session near the day’s high on a positive note. It formed a strong bullish bodied candle on the daily scale indicating sustained buying interest witnessed in the index.
“Now till it holds above 54,750 zones an up move could be seen towards 55,250 then 55,500 levels while support is seen at 54,500 then 54,250 levels, ”said Taparia.
Stocks to buy
Chandan Taparia has recommended three stocks to buy tomorrow. Taparia recommends buying Kotak Mahindra Bank, FSN E-Commerce Ventures (Nykaa), Eternal shares.
Kotak Mahindra Bank| Buy | Target Price: ₹485 | Stop Loss: ₹445
Stock has given a fresh pole-and-flag breakout on the daily chart and closed at its all-time high, indicating strong bullish momentum. It has formed a bullish Marubozu candle with notable volumes, highlighting sustained buying interest and strength in the ongoing uptrend. The RSI has also given a bullish crossover further supporting the positive price structure and the potential for continued upside.
Nykaa| Buy | Target Price: ₹373 | Stop Loss: ₹340
Stock has given a 40-session range breakout above the 350 zones and closed above the same, indicating strong buying interest. It has been forming higher highs and is trading near its 52-week high, highlighting sustained bullish momentum. The broader buying interest across new-age stocks is also providing support to the positive price structure.
Eternal | Buy | Target Price: ₹357 | Stop Loss: ₹326
Stock has given a fresh inside bar breakout and is respecting its 100 DEMA, indicating strong support at lower levels as dips are being absorbed by buyers. The improving price structure suggests renewed buying interest and a potential continuation of the up move. Sustaining above the 344 zone could trigger sharp upward momentum and support further upside.
Disclaimer: This story is for educational purposes only. 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.
