Indian stock market: The domestic benchmark indices, Sensex and Nifty 50, ended with little change due to profit-taking and mixed global signals, as investors anticipated the upcoming Federal Reserve meeting. The 30-share BSE Sensex fell by 12.16 points, or 0.02 per cent, finishing at 80,424.68, while the Nifty 50 rose by 31.50 points, or 0.13 per cent, closing at 24,572.65.
“Nifty opened positive above 24600 zones and marked the high of the day in the initial tick. It witnessed some weakness in the first couple of hours and was followed by range bound move thereafter. It formed a small bodied bearish candle on daily frame with longer lower shadow indicating small declines are being absorbed swiftly. It has decisively come out its range of the last nine sessions and managed to close above 24550 zones with gains of around 30 points. Now it has to continue to hold above 24500 zones for an up move towards 24700 then 24900 levels while support is seen at 24450 then 24200 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL.
India VIX was down by 0.61% from 14.40 to 14.32 levels. Volatility has been cooling off from the last three sessions and comforting the bulls to stick around the support levels.
On option front, Maximum Call OI is at 25000 then 24600 strike while Maximum Put OI is at 23900 then 24500 strike. Call writing is seen at 24600 then 25000 strike while Put writing is seen at 23900 then 24600 strike. Option data suggests a broader trading range in between 24200 to 25000 zones while an immediate range between 24400 to 24800 levels.
Bank Nifty
On the Bank Nifty outlook, Taparia further added, “Bank Nifty index opened on a positive note but failed to hold 50700 zones in the initial hour of the session. Later it remained choppy in a narrow range of 300 points and ended with losses below 50400 levels. It formed a small bearish candle on daily scale and is finding some pause near its 50 DEMA however multiple supports are intact at lower zones. Now it has to continue to hold above 50250 zones for a bounce towards 50750 then 51000 levels while support is seen at 50250 then 50000 zones.”
Chandan Taparia has recommended three stocks to buy today, August 19. According to him, these stocks – Dixon Technologies, Voltas and Petronet LNG – are technically placed to see a decent upmove.
Stocks to buy
Dixon Technologies: Buy at ₹12,784 | Target Price: ₹13,650 | Stop Loss: ₹12,315
A Double Bottom pattern has appeared on the daily time frame with an upward breakout and higher than average buying volumes indicating bullish sentiment. The MACD Line is well above the signal line indicating strong upward momentum.
Voltas: Buy at ₹1,609 | Target Price: ₹1,730 | Stop Loss: ₹1,550
Voltas has formed a rising 3 candle pattern on the daily scale which is a bullish continuation pattern with higher than average buying volumes. The ADX Indicator has been moving up since its trough which indicates the up move has strength to support it.
Petronet LNG: Buy at ₹375 | Target Price: ₹395 | Stop Loss: ₹365
On the Daily Chart price has broken out on the upside from an ascending triangle with higher than average buying volumes. The RSI indicator is headed up which suggests upward momentum.
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.