Indian stock market: Market indices both Sensex and Nifty witnessed contrasting trends. The large-cap indices, Nifty 50 and Sensex, closed at record highs, whereas the mid-cap and small-cap indices experienced a one percent decline each. The Nifty 50 closed at a new record high of 24,800.85, rising 188 points or 0.76 percent. Similarly, the Sensex reached a new closing high of 81,343.46, gaining 627 points or 0.78 percent.
“Nifty index opened positive and after the swings in the initial half of the session, bulls were in complete action and drove it to a fresh all time high of 24837 zones. It formed a strong Bullish candle and closed with gains of around 190 points. Now it has to hold above 24750 zones for a fresh up move towards 25000 and 25150 zones whereas supports are placed at 24650 then 24500 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL.
India VIX was up by 2.02% from 14.22 to 14.51 levels. Volatility slightly inched higher but is hovering at its lower zones which is comforting the bulls to add momentum.
On option front, Maximum Call OI is at 25500 then 25000 strike while Maximum Put OI is at 24000 then 23500 strike. Call writing is seen at 25500 then 24800 strike while Put writing is seen at 24800 then 24500 strike. Option data suggests a broader trading range in between 24400 to 25200 zones while an immediate range between 24600 to 25000 levels.
Bank Nifty
On the Bank Nifty outlook, Taparia added, “Bank Nifty Index opened marginally lower but remained quite volatile in a broader range of 400 points in between 52200 to 52600 zones in the first half of the session. Later good recovery was seen from lower zones and it formed a Bullish candle on daily scale to end with gains of around 220 points. However Index has got stuck in a wider range in between 52000 to 52800 zones from the last few sessions and stock specific action is seen within banking space. Now it has to continue to hold above 52250 zones for an up move towards 53000 then 53350 levels while on the downside support is seen at 52250 then 52000 levels.”
Chandan Taparia has recommended three stocks to buy tomorrow, July 18. According to him, these stocks – Marico, ICICI Bank, TCS – are technically placed to see a decent upmove.
Stocks to buy
Marico: Buy at ₹684 | Target Price: ₹715 | Stop Loss: ₹664
MARICO has given trend line breakout on daily chart and managed to close above the same. It has formed a Marubozu candle on daily chart which implies complete dominance by bulls.
ICICI Bank: Buy at ₹1250 | Target Price: ₹1310 | Stop Loss: ₹1220
ICICI BANK is in continuous uptrend and forming higher top – higher bottom from past four weeks. It is respecting 20 DEMA and every small decline is being bought into.
Tata Consultancy Services: Buy at ₹4315 | Target Price: ₹4550 | Stop Loss: ₹4180
TCS has formed base near 3800-3900 band and turned higher. It has given rounding bottom breakout on weekly scale and buying is visible across IT Stocks which has bullish implications.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.