Stock market today: Indian stock market indices began the week on a positive note on Monday, following gains in other Asian markets after U.S. Federal Reserve Chair Jerome Powell suggested a potential interest rate reduction in the upcoming month.
As of 9:18 IST, the Nifty 50 rose 0.28% to reach 24,939.15 points, while the BSE Sensex increased by 0.29%, reaching 81,542.95.
On Friday, Powell indicated the possibility of a rate decrease at the Federal Reserve’s September meeting, acknowledging increasing risks to the job market but also warning that inflation continued to pose a threat and that a final decision had not been determined.
Decreased U.S. interest rates enhance the attractiveness of emerging markets, including India, for foreign investors, while also contributing to lower Treasury yields and a weaker dollar.
Technical views by Rupak De, Senior Technical Analyst, LKP Securities on F&O market
Following a strong rally, Nifty 50 took a pause on Friday, indicating a short consolidation phase before the next upward move. The index remains well above the 50 EMA, affirming the short-term uptrend. Support is placed at 24,800, and as long as this level holds, the trend stays positive with potential to advance towards 25,000–25,250.
Open Interest Analysis: Significant additions were observed in open interest at the 25,000 CALL, while PUT writing remained negligible on Friday. Maximum CALL open interest stood at the 25,000 strike, with the highest PUT open interest also concentrated at the same level, indicating a broad trading range for the market. For the current weekly expiry, CALL writers currently outnumber PUT writers.
Strategy: Sentiment is likely to improve in the short term.
Trade: Buy Nifty 28th Aug 25000CE ABOVE 80 TGT 130 SL 48
Buy UNO Minda at ₹1,266; Target price of ₹1,330; Stop loss at ₹1,219
The stock has moved higher after a brief consolidation on the daily chart, indicating renewed optimism. It is trading comfortably above the 50 EMA, confirming a bullish trend, while the RSI has entered a bullish crossover following the breakout. In the near term, the trend is expected to remain positive with potential upside towards 1,330. On the downside, support is placed at 1,219.
Buy Lupin at ₹970; Target price of ₹2,050; Stop loss of ₹1,924
Following a bullish harami pattern formation the stock moved up higher which is an indication of bullish reversal. The price has been sustaining above important 50EMA. The RSI is in bullish crossover. In the short term, the stock might move towards 2,030-2,050. While, a support is placed at 1,924.
Sell Axis Bank at ₹1,070; Target price of ₹1,040; Stop loss of ₹1,086
The stock has slipped from its recent consolidation, suggesting growing bearish sentiment. Moreover, it has been trading below the 21 EMA on the daily timeframe. The RSI is on the verge of a bearish crossover. In the short term, the stock may drift lower towards 1,040, while on the upside, resistance is placed at 1,086.
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.
