Stock market today: Domestic benchmark indices, currency and debt markets will remain closed on Friday, 2 October, on account of Gandhi Jayanti. Trading will resume on Monday, 5 October.
The BSE Sensex fell 0.79% to 71,909.70 on Thursday, while the broader NSE index declined 0.88% to 22,421.95. The benchmarks extended their losing streak to an eighth consecutive week, marking their longest such run in 25 years. Record foreign selling, crude oil prices near $100 a barrel and a sharp rise in global bond yields weighed on investor sentiment.
The Indian rupee also came under pressure, falling 0.5% to ₹96.3150 against the US dollar on Thursday, its weakest level in two months. The currency was hit by surging global bond yields and higher oil prices, adding to the pressure from continued foreign portfolio outflows.
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 22,500 then 22,700 strike while maximum put OI is at 22,000 then 22,300 strike.
“Call writing is seen at 22,500 then 22,600 strike while Put writing is seen at 22,300 then 22,200 strike. Option data suggests a broader trading range in between 22,000 to 22,800 zones while an immediate range between 22,200 to 22,600 levels,” said Taparia.
Nifty 50 Outlook
The Nifty 50 index opened negative and remained sideways in the first half before witnessing heavy selling pressure in the second half and it went towards 22200 zones. It witnessed a substantial recovery to 22400 zones towards the end amidst heightened volatility. It formed a bearish candle with a longer lower wick on the daily frame while the weekly chart formed a big bearish candle indicating sustained selling at higher levels.
“Now till it holds below 22,500 zones weakness could extend towards 22,300 then 22,200 levels while on the upside hurdles can be seen at 22,650 then 22,750 zones,” said Taparia.
Bank Nifty Outlook
Bank Nifty index opened slightly lower and witnessed buying interest from the initial tick which lifted the index towards 55,000 zones. However it failed to sustain at higher levels and selling pressure emerged which dragged the index below 54,100 zones. It formed a small bearish bodied candle on the daily scale with longer upper and lower shadows indicating volatility in the market with resistance visible at higher zones and buying interest at lower levels. It formed a bearish bodied candle on the weekly scale with a lower shadow indicating buying interest at lower levels.
“Now till it holds below 54,500 zones weakness could be seen towards 54,250 then 54,000 zones while resistance is intact at 55,000 then 55,250 zones,” the MOFSL analyst added.
Stocks to buy
Chandan Taparia has recommended two stocks to buy next week. Taparia recommends buying Laurus Labs and Canara Bank 27th October Futures shares.
Laurus Labs | Buy | Target Price: ₹2,100 | Stop Loss: ₹1,920
Stock is in a strong uptrend and consolidating near its all-time high territory. It is respecting the 20 DEMA and witnessing steady buying interest from the same. Even amid weakness in the benchmark indices, the stock continues to outperform, indicating relative strength.
Canara Bank | Buy | Target Price: ₹111 | Stop Loss: ₹122
Stock has given a range breakdown below the 125 level and is sustaining below the breakdown zone indicating increasing selling pressure. It has formed a bearish candle and is also trading below its short-term moving averages highlighting weakness in the near term price structure. Sustaining below the 125 level could lead to further downside momentum.
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.
