- Indian stock market to open lower amid US-Iran conflict and rising oil prices
- Nifty 50 closed at 24,175.65 with support near 24,100 levels on Friday
- Nifty may rise above 24,200 with resistance at 24,350 and 24,450 zones
The Indian stock market is expected to open lower on Monday, tracking weakness in global peers, weighed down by the escalation in the US-Iran war in the Middle East and rising crude oil prices.
The trends on Gift Nifty also signals a negative start for the benchmark indices, Nifty 50 and Sensex today.
The Nifty 50 index took support around 24,100 levels on Friday, and closed higher by 84.80 points, or 0.35%, at 24,175.65. It formed a bullish candle on the daily frame while marking the fourth consecutive bearish candle on the weekly frame as profit booking remained visible at higher levels.
According to Chandan Taparia, Head Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services Ltd, if Nifty 50 crosses and holds above 24,200 zones, then upside could be seen towards 24,350 then 24,450 zones, while support can be seen at 24,050 then 23,900 zones.
On the option front, maximum Call Open Interest (OI) is at 24,300 then 24,500 strike, while maximum Put OI is at 24,200 then 24,100 strike.
“Call writing is seen at 24,100 then 24,300 strike, while Put writing is seen at 24,000 then 24,100 strike. Option data suggests a broader trading range in between 23,800 to 24,600 zones, while an immediate range between 24,000 to 24,400 levels,” said Taparia.
Bank Nifty Outlook
Bank Nifty index has formed a Doji sort of a candle on the daily scale indicating indecisive price action and lack of directional strength.
“The Bank Nifty index formed a bearish bodied candle on the weekly scale with slight upper and lower shadows indicating resistance remains intact at higher zones while buying interest is still visible at lower levels. Now, if it crosses and holds above 57,750 zones then upside could be seen towards 58,000 then 58,250 zones, while support can be seen at 57,000 then 56,750 zones,” said Taparia.
Stocks To Buy Today
Chandan Taparia has recommended five stocks to buy today. These stock picks are Coforge, Timex Group India, Glenmark Pharmaceuticals, Aeroflex Industries, and Capri Global Capital shares.
Coforge | Buy | Target Price: Rs 2,130 | Stop Loss: Rs 1,950
Coforge share price is in a strong uptrend and is outperforming the broader market. It has now broken above its all-time high near Rs 2,000 zone, along with a breakout from the range of the last nearly 1.5 years, indicating a strong structural breakout.
Coforge stock has formed a bullish candle on the daily chart and has been forming higher highs for the last five weeks, reflecting sustained buying momentum, Taparia said.
He has a ‘Buy' rating on Coforge shares with a target price of Rs 2,130 apiece, and a stop loss at Rs 1,950.
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Timex Group India | Buy | Target Price: Rs 700 | Stop Loss: Rs 630
Timex Group India share price has given an Inside Bar breakout near its all-time high levels and formed a strong bullish candle on the daily chart. The stock continues to form higher highs, indicating that buyers remain active on every dip and bullish momentum is likely to continue.
Taparia recommends buying Timex Group India shares for a target price of Rs 700, while maintaining a stop loss at Rs 630 level.
Glenmark Pharmaceuticals | Buy | Target Price: Rs 2,650 | Stop Loss: Rs 2,440
Glenmark Pharmaceuticals share price has been forming higher highs and higher lows for the last seven sessions clearly indicating strong buying interest. Minor declines are being bought into as the stock continues to find support near its 10 EMA, Taparia said.
The stock has also breached and sustained above its previous swing high of Rs 2,475 strengthening the bullish setup. The RSI has given a bullish crossover further supporting the positive momentum.
He suggests buying Glenmark Pharmaceuticals for a target price of Rs 2,650 and keeping a stop loss at Rs 2,440.
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Aeroflex Industries | Buy | Target Price: Rs 570 | Stop Loss: Rs 525
Aeroflex Industries stock price has given an inside-bar breakout on the daily chart and is trading in all-time high territory, indicating strong underlying momentum. Momentum indicators are positively placed, supporting the bullish setup. Sustaining above the 540 zone could trigger the next leg of the up move, said the MOFSL analyst.
He has a ‘Buy' call on Aeroflex Industries shares, with a target price of Rs 570 and a stop loss of Rs 525 level.
Capri Global Capital | Buy | Target Price: Rs 275 | Stop Loss: Rs 250
Capri Global Capital share price has formed a bullish candle, accompanied by volumes that have remained above the 10-day average in recent sessions, indicating increased participation. Sustaining above the Rs 265 level could accelerate the up move and further strengthen the bullish momentum, Taparia said.
He recommends buying Capri Global Capital shares for a target price of Rs 275 and maintaining a stop loss at Rs 250 level.
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