Sensex and Nifty 50, the Indian stock market benchmark indices, are estimated to see a flat opening on Tuesday, following mixed global market cues. The trends in Gift Nifty also signal a muted opening for the market.
The domestic equity market witnessed strong gains on Monday, and the benchmark Nifty 50 closed at the 25,000 level.
The Sensex closed 455.37 points, or 0.56%, higher at 82,176.45, while the Nifty 50 ended up 148.00 points, or 0.60%, at 25,001.15.
On the Nifty options front, Chandan Taparia, Head – Derivatives and Technicals, Wealth Management, MOFSL, noted that the maximum Call OI (Open Interest) is at 26,000 then 25,000 strike while maximum Put OI is at 24,000 then 24,500 strike.
“Call writing is seen at 25,000 then 25,100 strike while Put writing is seen at 25,000 then 24,500 strike. Option data suggests a broader trading range in between 24,500 to 25,500 zones while an immediate range between 24,800 to 25,200 levels,” Taparia said.
Nifty 50 Outlook
Nifty 50 managed to close above the 25,000 mark on May 26, reinforcing bullish sentiment.
“Nifty 50 formed a bullish candle on the daily chart and continued the formation of higher highs over the last few sessions, signaling sustained upward momentum. Now, it has to hold above 24,850 zones for an up move towards 25,200 then 25,400 zones, while supports are shifting higher at 24,850, then 24,700 zones,” Taparia said.
Bank Nifty Outlook
Bank Nifty index gained 173.75 points, or 0.31%, to close at 55,572.00, and formed a Doji-like candle on the daily chart, indicating indecision at higher levels.
“Technically, the Bank Nifty index is hovering near the verge of a range breakout, and a decisive move in the coming sessions could set the tone for its next move. Now, it has to hold above 55,250 zones for an up move towards 55,750 then 56,000 levels while on the downside support is seen at 55,250, then 55,000 zones,” Taparia said.
Chandan Taparia has recommended three stocks to buy today, May 27. Taparia recommends buying Housing & Urban Development Corporation (HUDCO), ITC, and Bharat Heavy Electricals Ltd (BHEL) shares.
Stocks to buy today
HUDCO | Buy | Target Price: ₹255 | Stop Loss: ₹230
HUDCO share price has broken out of a falling supply trendline on the daily chart with a large bodied candle and a surge in volumes visible. The MACD indicator is giving a bullish crossover which may confirm the upward momentum, Taparia said.
Taparia recommends buying HUDCO shares for a target price of ₹255, while maintaining a stop loss at ₹230.
ITC | Buy | Target Price: ₹460 | Stop Loss: ₹434
ITC share price has given a range breakout on the daily scale and given a golden crossover to confirm the up move. The RSI indicator is positively placed which has bullish implications, said Taparia.
The MOFSL analyst recommends buying ITC shares at current market price. He has ITC share price target of ₹460, while the stop loss is suggested at ₹434 level.
BHEL | Buy | Target Price: ₹275 | Stop Loss: ₹253
BHEL share price has breached above a rounding bottom pattern on the daily scale with higher than average traded volumes. The ADX line is rising which confirms the strength of the uptrend, Taparia said.
He recommends buying BHEL shares for a target price of ₹275, while keeping a stop loss at ₹253 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.
