The Indian stock market is expected to open on a cautious note and remain under pressure on Thursday, weighed down by concerns over persistently high crude oil prices and escalating geopolitical tensions.
In the previous session, the benchmark indices ended lower, with the Nifty 50 slipping below 22,900 level.
According to Jay Thakkar, Vice President & Head of Derivatives and Quant Research, ICICI Securities, the short-term bias remains sideways to negative until Nifty 50 does not surpass 23,000 levels.
“Call writers remain aggressive, with the immediate trading range shifting to 22,500-23,000 from 23,000-23,500. A break below 22,500 is likely if crude oil prices remain elevated,” Thakkar said.
Below 22,500, the next support levels are 22,000 and 21,700, with the latter being a crucial support. A close above 23,000 could trigger further short covering.
Stocks To Buy Or Sell Today
Jay Thakkar has recommended two stocks to buy today and one stock to sell. He suggests buying LTM and Dr Reddy's Laboratories stock futures, while selling Oberoi Realty stock futures.
LTM | Buy
> Entry Price: Rs 4,280-4,310
> Target Price: Rs 4,450-4,550
> Stop Loss: Below Rs 4,230
LTM has formed a short-term base after recovering from lower levels. Options data indicate support at Rs 4,200-4,300, while Rs 4,500 is the key near-term target. Accumulated short positions could trigger a short-covering rally, Thakkar said.
Dr. Reddy's Laboratories | Buy
> Entry Price: Rs 1,230-1,250
> Target Price: Rs 1,300 and Rs 1,350
> Stop Loss: Below Rs 1,180
Dr. Reddy's has outperformed the Nifty Pharma Index and witnessed long additions in futures, indicating a bullish near-term trend. Options data show strong put additions at Rs 1,100-1,200, while a move above Rs 1,200 could trigger further short covering.
Oberoi Realty | Sell
> Entry Price: Rs 1,640-1,660
> Target Price: Rs 1,580-1,550
> Stop Loss: Above Rs 1,720
Oberoi Realty has formed lower tops and lower bottoms, accompanied by an increase in short positions, indicating near-term weakness. Options data show significant call additions at Rs 1,680-1,720, keeping the outlook negative until these levels are breached. Elevated inflationary pressures could also weigh on the stock, Thakkar added.
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