Sensex and Nifty 50, the Indian stock market benchmark indices, are likely to see a slightly positive opening on Friday, tracking mixed sentiment in global markets. The trends on Gift Nifty also indicate a mildly positive opening for the domestic equity market.
The domestic equity market ended lower on Thursday, with the benchmark Nifty 50 slipping below 24,700 level.
The Sensex fell 644.64 points, or 0.79%, to close at 80,951.99, while the Nifty 50 ended 203.75 points, or 0.82%, lower at 24,609.70. The Bank Nifty index dropped 133.80 points, or 0.24%, to close at 54,941.30, forming a small-bodied red candle, reflecting indecision amid late-session volatility.
On the Nifty options front, Chandan Taparia, Head – Derivatives and Technicals, Wealth Management, MOFSL, noted that maximum Call OI (Open Interest) is at 26,000 then 25,000 strike while maximum Put OI is at 24,000 then 23,000 strike.
“Call writing is seen at 26,500 then 24,600 strike while Put writing is seen at 24,600 then 22,500 strike. Option data suggests a broader trading range in between 24,000 to 250,00 zones while an immediate range between 24,400 to 24,800 levels,” said Taparia.
Nifty 50 Outlook
Nifty 50 formed a bearish candle with a long lower shadow on the daily chart, indicating that buying interest is emerging at lower levels.
“Despite this rebound, the Nifty 50 index has been forming lower highs for the past five sessions. Now, it has to cross and hold above 24,700 zones for an up move towards 24,850 then 25,000 zones while a hold below the same could see a profit booking decline towards 24,444 then 24,300 levels,” Taparia said.
Bank Nifty Outlook
Bank Nifty index formed a small bodied candle with long lower shadow on daily scale as buying is visible at lower levels but momentum is missing at higher zones.
“Bank Nifty index is hovering near its 20 DEMA as it got stuck in a range of 1,000 points from the last few sessions. Now, it has to cross and hold above 55,000 zones for an up move towards 55,250 then 55,555 zones while a hold below the same could see a profit booking decline towards 54,750 then 54,500 levels,” said Taparia.
Chandan Taparia has recommended three stocks to buy today, May 23. Taparia recommends buying Steel Authority of India (SAIL), Max Financial Services, and Hindustan Aeronautics (HAL) shares.
Stocks to buy today
SAIL | Buy | Target Price: ₹132 | Stop Loss: ₹121
SAIL share price has broken out of a flag and pole pattern on the daily chart with a large bodied bullish candle. The ADX line has turned up which confirms the strength of the uptrend, Taparia said.
He recommends buying SAIL shares for a target price of ₹132, while suggesting a stop loss at ₹121 level.
Max Financial Services | Buy | Target Price: ₹1,500 | Stop Loss: ₹1,370
Max Financial Services share price is in an overall uptrend and is respecting its 20 DEMA with slight dips being bought into. The MACD indicator is headed up which confirms the bullish momentum, said the MOFSL analyst.
He suggests buying Max Financial Services shares for a target price of ₹1,500 and keeping stop loss at ₹1,370.
HAL | Buy | Target Price: ₹5,385 | Stop Loss: ₹4,850
HAL share price has retested its breakout from a consolidation zone and formed a bullish engulfing pattern. The RSI indicator is positively placed which has bullish implications, said Taparia.
He has a ‘Buy’ rating with HAL share price target of ₹5,385 apiece, and stop loss of ₹4,850.
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.
