The Indian stock market is expected to open higher on Wednesday, tracking upbeat global market cues, on hopes that the US-Iran war can end soon. The trends on Gift Nifty also signals a gap-up start for the frontline indices, Nifty 50 and Sensex.
In the previous session, the Indian stock market crashed, with the benchmark Nifty 50 slipping below 22,400 level.
The Sensex plunged 1,635.67 points, or 2.22%, to close at 71,947.55, while the Nifty 50 settled 488.20 points, or 2.14%, lower at 22,331.40.
On the Nifty options front, Chandan Taparia Head Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services Ltd said that the maximum Call Open Interest (OI) is at 23,000 then 22,500 strike, while maximum Put OI is at 21,500 then 22,000 strike.
“Call writing is seen at 22,500 then 23,500 strike, while Put writing is seen at 21,500 then 22,500 strike. Option data suggests a broader trading range in between 21,800 to 22,800 zones while an immediate range between 22,000 to 22,600 levels,” said Taparia.
Nifty 50 Outlook
Nifty 50 formed a bearish candle on the daily frame and closed near its lower band with losses of around 490 points.
“Nifty 50 index has wiped off around 4,000 points in the last seven weeks. Now, till Nifty 50 holds below 22,500 zone, weakness could be seen towards 22,000 then 21,750 zones, while hurdles have shifted lower to 22,600 then 22,800 zones,” said Taparia.
Bank Nifty Outlook
Bank Nifty index formed a bearish candle on the daily scale as selling pressure was seen at the higher zones and it drifted towards 50,100 zones to finally close with massive losses of around 2,000 points.
“The rate sensitive index has seen a correction of almost 10,000 points in the March series, marking it one of the steepest declines in the last six years. Now, till Bank Nifty holds below 50,500 zones, weakness could be seen towards 49,500 then 49,000 levels, while hurdles have shifted lower to 51,000 then 51,250 zones,” said Taparia.
Stocks to buy or sell
Chandan Taparia has recommended two stocks to buy today, April 1, and one stock to sell. Taparia recommends buying National Aluminium Company, Oil and Natural Gas Corporation (ONGC) shares today. On the other hand, he recommends selling United Spirits stock futures.
National Aluminium Company | Buy | Target Price: ₹410 | Stop Loss: ₹375
National Aluminium Company share price has bounced up from its 50 DEMA support zones with high traded volumes to support the price action. The MACD line is rising which confirms the positive momentum, Taparia said.
He recommends buying National Aluminium Company shares for a target price of ₹410 apiece, while maintaining a stop loss of ₹375.
ONGC | Buy | Target Price: ₹302 | Stop Loss: ₹275
ONGC share price has bounced up from its support zones with a surge in buying volumes confirming the up move. The RSI indicator has given a bullish crossover to confirm the uptrend.
Taparia has a ‘Buy’ call on ONGC shares for a target price of ₹302 apiece, and a stop loss of ₹275.
United Spirits | Sell | Target Price: ₹1,150 | Stop Loss: ₹1,260
United Spirits share price has broken down from a “Descending Triangle” pattern with a strong bodied bearish candle on the daily chart. The ADX line is rising which confirms the strength of the downtrend, Taparia said.
He suggests selling United Spirits 28th April Futures for a target price of ₹1,150, while keeping a stop loss at ₹1,260 level.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
