Stock market today: The domestic benchmark indices, showed little movement at the open on Monday, following two consecutive days of losses, as ongoing conflict between Israel and Iran limited investor enthusiasm.
The Nifty 50 rose by 0.06% to reach 24,732.35, while the BSE Sensex decreased by 0.1% to 81,034.45 at 9:15 IST.
Both indexes reported weekly losses on Friday due to Israel’s military actions against Iran intensifying tensions in the Middle East. Over the weekend, both nations conducted new attacks, resulting in civilian casualties and heightening fears of a wider regional conflict. Other Asian markets remained dull, as the MSCI Asia ex-Japan index slipped by 0.1%, while oil prices increased due to supply worries linked to the geopolitical unrest in the oil-rich Middle East region.
The rise in oil prices poses challenges for commodity importers like India, as crude oil represents a substantial portion of the country’s import expenses.
On the F&O segment, Rupak De of LKP Securities, has suggested Manappuram Finance Ltd, Biocon Ltd, and Karur Vysya Bank Ltd.
Technical views by Rupak De, Senior Technical Analyst, LKP Securities on F&O market:
Nifty 50
Nifty 50 witnessed a sharp decline, breaking below its 21-EMA, a crucial short-term moving average. However, it managed to find support near the recent consolidation zone, resulting in a strong intraday rebound. If the index holds above the 24,700 mark, the recovery may gather further momentum, potentially pushing it towards 25,000 in the near term. On the flip side, a sustained move below 24,700 could reignite bearish sentiment and increase downside pressure.
Open Interest Analysis: Good additions were seen in the open interest at the 24,700 PUT; apart from that 24,600 and 24,500 strikes witnessed decent Put addition. While CALL writers added substantial positions at the 24,700 strikes on Friday. Maximum CALL open interest was seen at the 25,000 strike, whereas maximum PUT open interest was seen at 24,500, indicating a broader range for the market. Currently the CALL writers are outnumbering the PUT writers for current weekly expiry.
Strategy: Strength increases if Nifty sustains above 24700 in the first hour.
Trade: Buy Nifty 19 June 24800CE ABOVE 140 TGT 200 SL 100.
Buy Manappuram Finance @ ₹277–280 | Target: ₹320 | Stop-loss: ₹259
The stock has formed a distorted Head and Shoulders pattern on the weekly chart, resulting in a sharp upward move. Recently, it has broken out of a consolidation phase, reinforcing the bullish sentiment. Given the evident demand, any pullbacks should be considered as buying opportunities in the near term. Key support lies at ₹259, and long positions may be initiated with a stop-loss at this level. On the upside, the stock holds potential to reach ₹320.
Buy Biocon @ ₹356 | Target: ₹385 | Stop-loss: ₹344
Biocon has broken out of a consolidation pattern on the daily chart, suggesting renewed bullish momentum. The stock has also crossed above its 200-day moving average, indicating a possible medium-term trend reversal. The RSI has entered a bullish crossover and is trending upwards, further supporting the positive outlook. The technical setup remains robust, with a near-term target of ₹385. However, a breach below the support at ₹344 could weaken the bullish view.
Buy Karur Vysya Bank @ ₹248 | Target: ₹272 | Stop-loss: ₹234
The stock has witnessed a flag pattern breakout on the weekly chart, highlighting a resurgence in buying interest. It continues to trade above its 200-day moving average, indicating a shift towards a bullish trend in the medium term. The daily RSI is in a bullish crossover and rising steadily, underlining positive momentum. The technical structure remains strong, with the stock expected to move towards ₹272 in the short term. Support is placed at ₹234; a decline below this level may negate the current bullish outlook.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
