The Indian stock market is expected to remain volatile on Friday as ongoing tensions in the Middle East amid the escalation in Israel-Iran war continue to dent sentiment. The Sensex and Nifty 50 are likely to open on a muted note, tracking mixed global market cues.
The trends on Gift Nifty also signal a flat opening for the Indian stock market today.
The equity market edged lower on Thursday, with the Nifty 50 closing marginally below 24,800 level. The Sensex fell 82.79 points, or 0.10%, to close at 81,361.87, while the Nifty 50 settled 18.80 points, or 0.08%, lower at 24,793.25.
On the Nifty options front, Chandan Taparia, Head – Derivatives and Technicals, Wealth Management, MOFSL said that the maximum Call OI (Open Interest) is at 25,000 then 26,000 strike while maximum Put OI is at 24,000 then 23,000 strike.
“Call writing is seen at 24,800 then 26,000 strike, while Put writing is seen at 24,800 then 24,000 strike. Option data suggests a broader trading range in between 24,300 to 25,300 zones, while an immediate range between 24,600 to 25,000 levels,” Taparia said.
Nifty 50 Outlook
Nifty 50 formed a doji and a spinning top sort of candle on the daily frame with a longer upper shadow indicating a tug of war between the bulls and bears, both of which are failing to establish control.
“Now, if Nifty 50 manages to hold above 24,700, up move can be seen towards 24,950 and 25,100 zones, while a hold below the same could see weakness towards 24,600 then 24,500 zones,” Chandan Taparia said.
Bank Nifty Outlook
Bank Nifty index declined 251.30 points, or 0.45%, to close at 55,577.45 on Thursday, forming a small bearish candle on daily scale as momentum is missing at higher zones but multiple supports are intact at lower levels.
“Now, Bank Nifty has to hold above 55,555 zones for a bounce towards 56,000 then 56,250 levels, while on the downside support is seen at 55,250 then 55,000 zones,” Taparia said.
Chandan Taparia has recommended two stocks to buy today, June 20, and one stock to sell. Taparia recommends buying Bharat Electronics (BEL) and Dr Reddy’s Laboratories shares today. On the other hand, he recommends selling Indian Energy Exchange (IEX) stock futures.
Stocks to buy or sell
BEL | Buy | Target Price: ₹425 | Stop Loss: ₹385
BEL share price is in an overall uptrend with slight dips being bought into. It is perfectly respecting its 20 DEMA support zones. The ADX line is rising which confirms the strength of the uptrend, Taparia said.
He recommends buying BEL shares for a target price of ₹425 apiece, while maintaining a stop loss at ₹385 level.
Dr Reddy’s Laboratories | Buy | Target Price: ₹1,405 | Stop Loss: ₹1,290
Dr Reddy’s share price has formed a bullish engulfing pattern near its previous breakout zones which hints at a possible price upturn. The RSI indicator is rising which may confirm the bullish reversal, said the MOFSL analyst.
He has a ‘Buy’ rating on Dr Reddy’s Laboratories shares with a target price of ₹1,405 apiece, suggesting a stop loss at ₹1,290 level.
IEX | Sell | Target Price: ₹165 | Stop Loss: ₹186
IEX share price has breached below its 200 DEMA support zones with a strong bodied bearish candle. The MACD line is declining to support the downwards momentum, Taparia said.
He recommends selling IEX 26th June Futures for a target price of ₹165, while keeping a stop loss at ₹186 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.
