Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.
Chandan Taparia, head derivatives & technicals, wealth management, Motilal Oswal Financial Services Ltd
Nifty index opened on a flattish note and bulls took charge right from the first tick itself. Any small dips were absorbed by the buyers. Momentum accelerated in the second half as the index surpassed its key hurdle of 22,550 zones and managed to sustain above the same. It formed a bullish candle on the daily chart and also gave an inside bar breakout indicating a strong recovery in buying momentum. Now it has to hold above 22,700 zones for a bounce towards 22,850 then 23,000 levels while on the downside support is seen at 22,600 then 22,500 levels.
On option front, Maximum Call OI is at 23,000 then 23,200 strike while Maximum Put OI is at 22,500 then 22,600 strike. Call writing is seen at 23,000 then 23,100 strike while Put writing is seen at 22,500 then 22,600 strike. Option data suggests a broader trading range in between 22,300 to 23,200 zones while an immediate range between 22,500 to 23,000 levels.
Bank Nifty index opened on a flattish note and gradually extended the momentum towards 55,500 zones in the latter part of the session. It formed a bullish candle on daily scale as buying interest was visible at lower levels but is still hovering near its 20 DEMA. Now it has to hold above 55,500 zones for a bounce towards 55,750 then 56,000 levels while on the downside support is seen at 55,250 then 55,000 levels.
CHECK Stock Market LIVE Updates Stocks to buy recommendations by Chandan Taparia
Persistent Systems View: Buy CMP: ₹5,988 SL: ₹5,800 Target: ₹6,300
Persistent Systems stock has formed a strong bullish Marubozu candle and has been forming higher highs and higher lows over the last three sessions, indicating sustained buying momentum. It has surpassed the previous hurdle near the ₹5,900 zone and closed above the same, confirming a bullish breakout. The RSI is also inching higher further supporting the positive momentum and potential for continued upside.
Hindustan Aeronautics View: Buy CMP: ₹4,869 SL: ₹4,725 Target: ₹5,150
Hindustan Aeronautics stock has formed a support base above its 200 DEMA which coincides with the 61.8% retracement level of the previous uptrend. On the weekly charts, prices have re-tested the previous breakout zone and hence the risk reward seems favourable. The RSI oscillator on the on the daily chart has given a positive crossover hinting at a bullish momentum.
Shriram Finance View: Buy CMP: ₹988 SL: ₹960 Target: ₹1,050
Shriram Finance stock has formed a strong bullish candle with notable volumes indicating renewed buying interest. It has negated its sequence of lower lows on the weekly scale and is showing signs of resuming its uptrend after witnessing weakness over the last 7–8 weeks. The stock has also reclaimed its 20 DEMA, highlighting an improvement in the price structure.
