Stock market today: Indian equities ended lower on Monday, 12 October, with the Nifty 50 and Sensex retreating as investors weighed the Reserve Bank of India’s efforts to stabilise the rupee against persistent concerns over high crude oil prices and the prospect of a weaker monsoon.
The Nifty 50 declined 0.7% to close at 22,363.35, while the Sensex shed 0.76% to settle at 71,924.68.
The decline followed Friday’s recovery, when both indices broke a 25-year record losing streak and rebounded from multi-year lows. However, the relief rally failed to sustain momentum, with early gains giving way to selling pressure on Monday.
Market participants are now turning their attention to India’s upcoming inflation data for fresh signals on the monetary policy trajectory, particularly after the RBI raised interest rates last week.
Chandan Taparia has recommended buying PNB Housing Finance and TVS Motor Company for tomorrow, citing bullish technical indicators, improving price structures and positive momentum. He has set a target price of ₹1,280 for PNB Housing Finance, with a stop-loss of ₹1,160, and a target of ₹4,150 for TVS Motor Company, with a stop-loss of ₹3,820.
On the Nifty options front, Chandan Taparia, Head Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services Ltd, said that the maximum call OI is at 22,600 then 22,500 strike, while the maximum put OI is at 22,300 then 22,000 strike.
“Call writing is seen at 22,400 then 22,600 strike, while Put writing is seen at 22,300 then 22,350 strike. Option data suggests a broader trading range between 21,900 and 22,800 zones, while an immediate range between 22,100 and 22,600 levels,” said Taparia.
Nifty 50 Outlook
Nifty 50 index opened on a positive note but failed to sustain above 22,650 zones with selling pressure emerging right from the first tick. Bears gained control and the index moved lower towards 22,300 zones. It formed a bearish candle on the daily chart indicating selling pressure to continue at higher levels.
“Now till it holds below 22,400 zones weakness could extend towards 22,250 then 22,100 levels while on the upside hurdles can be seen at 22,500 then 22,600 zones,” said Taparia.
Bank Nifty Outlook
Bank Nifty index opened marginally higher but failed to hold at higher levels and gradually drifted lower towards 54,700 zones in the latter part of the session. It formed a bearish candle on daily scale as selling pressure is seen at higher zones and is holding below its 20 DEMA.
“Now if it holds below 55,000 zones weakness could be seen towards 54,500 then 54,250 levels while on the upside hurdle is seen at 55,250 then 55,500 zones,” the MOFSL analyst added.
Stocks to buy
Chandan Taparia has recommended two stocks to buy or sell tomorrow. Taparia recommends buying PNB Housing Finance and TVS Motor Company shares.
PNB Housing Finance | Buy | Target Price: ₹1,280 | Stop Loss: ₹1,160
Stock is in an overall uptrend and is trading near its 52-week high, highlighting sustained bullish momentum. It has formed a bullish candle and has been forming higher highs over the last four sessions, indicating consistent buying interest. The RSI is inching higher, currently at 64, reflecting strong momentum and further supporting the positive price structure.
TVS Motor Company | Buy | Target Price: ₹4,150 | Stop Loss: ₹3,820
Stock is respecting its 200 DEMA and is seeing a bounce from it, indicating buying interest at lower levels. It has negated its sequence of lower tops and lower bottoms, signalling an improvement in the overall price structure and a potential trend reversal.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
