The Indian stock market indices, Senex and Nifty 50, are expected to extend losses on Friday, following 1% decline in the previous session amid weak global market cues after escalating geopolitical tensions in the Middle East as Israel conducted airstrikes on Iran. The trends on Gift Nifty also signal a gap-down start for the Indian stock market today.
Israel launched strikes on Iran on Friday, targeting key nuclear and military sites. According to Israel Prime Minister Benjamin Netanyahu, the operation hit the “core of Iran’s nuclear enrichment programme,” including the Natanz atomic facility and prominent nuclear scientists.
The domestic equity market ended lower on Thursday, with both the benchmark Nifty 50 declined a percent each.
The Sensex plunged 823.16 points, or 1.00%, to close at 81,691.98, while the Nifty 50 closed 253.20 points, or 1.01%, lower at 24,888.20.
On the Nifty options front, maximum Call OI (Open Interest) is at 25,200 then 25,500 strike, while maximum Put OI is at 24,000 then 24,500 strike.
“Call writing is seen at 25,100 then 25,000 strike, while Put writing is seen at 24,900 then 24,000 strike. Option data suggests a broader trading range in between 24,400 to 25,400 zones while an immediate range between 24,600 to 25,100 levels,” said Chandan Taparia, Head – Derivatives and Technicals, Wealth Management, MOFSL.
Nifty 50 Outlook
Nifty 50 index slipped below the psychological 25,000 mark on June 12, breaching it after the recent breakout.
“Nifty 50 formed a large bearish candle on the daily chart, wiping out gains of the last three sessions. The index also negated its recent sequence of higher highs and ended the day with losses of around 250 points. Now, till it holds below 25,000 zones, profit booking could be seen towards 24,750 then 24,600 zones, while hurdles can be seen at 25,000 then 25,100 zones,” Taparia said.
Bank Nifty Outlook
Bank Nifty index formed a bearish candle on daily scale as selling pressure was seen at higher zones and forming lower highs from the last few sessions as banking heavyweights relatively underperformed.
“Bank Nifty index corrected almost 1,100 points from its all-time high territory and is now hovering near its 20 DEMA. Now, till it holds below 56,250 zones some weakness could be seen towards 55,750 then 55,555 levels, while on the upside, hurdle is seen at 56,250 then 56,500 zones,” said Taparia.
Chandan Taparia has recommended three stocks to buy today, June 13. Taparia recommends buying SRF, Mphasis and RBL Bank shares.
Stocks to buy
SRF | Buy | Target Price: ₹3,250 | Stop Loss: ₹3,035
SRF share price is retesting its breakout from a consolidation zone with higher than average traded volumes. It is respecting its 100 DEMA support zones. The RSI indicator is positively placed which has bullish implications, Chandan Taparia said.
He recommends buying SRF shares for a target price of ₹3,250, while maintaining a stop loss at ₹3,035 level.
Mphasis | Buy | Target Price: ₹2,800 | Stop Loss: ₹2,585
Mphasis share price has broken out of an ascending triangle on the daily chart and is holding above its 200 DEMA. The MACD indicator is headed up which confirms the positive momentum, the MOFSL analyst said.
He has a ‘Buy’ call on Mphasis shares, with a target price of ₹2,800, and a stop loss of ₹2,585.
RBL Bank | Buy | Target Price: ₹235 | Stop Loss: ₹217
RBL Bank share price is in an overall uptrend and is respecting its 20 DEMA support zone with slight dips being bought into. The ADX line is rising which confirms the strength of the uptrend, Taparia said.
He has a ‘buy’ call on the stock, with RBL Bank share price target of ₹235 apiece, while suggesting a stop loss at ₹217 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.
