Nifty, Bank Nifty outlook; Polycab, PI Industries among top stocks to buy

Polycab and Jio Financial Services are among the top stocks to buy today, says Chandan Taparia

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Nifty Outlook

Nifty index opened on a negative note and immediately dipped to 24,600 zones, after which the index staged a massive recovery throughout the day and headed towards 24,850 zones in the last hour of the session. It formed a bullish candle along with a Bullish Engulfing price pattern on daily frame and closed with gains of around 140 points. Now it has to hold above 24,750 zones, for an up move towards 25,000 then 25,100 zones while support can be seen at 24,600 then 24,442 zones.

On option front, Maximum Call OI is at 25,000 then 25,200 strike while Maximum Put OI is at 24,800 then 24,700 strike. Call writing is seen at 25,150 then 25,800 strike while Put writing is seen at 24,800 then 24,700 strike. Option data suggests a broader trading range in between 24,300 to 25,300 zones while an immediate range between 24,600 to 25,100 levels.

Bank Nifty Outlook

Bank Nifty index opened on a negative note but remained consolidative in a narrow range of 200 points between 55,800 to 56,000 zones in the first half of the session. Some recovery was seen in the latter part of the session towards 56,300 levels, but it remained choppy as momentum was missing at higher zones. It formed a bullish candle on the daily scale as it closed above its opening levels, but is forming lower highs from the last few sessions. Now it has to hold above 56,000 zones for a bounce towards 56,500 then 56,750 levels while a hold below the same could see some weakness towards 56,000 then 55,750 zones.

Stocks to buy today

Buy Polycab| CMP:₹6,962| Stop-loss:₹6,780| Target:₹7,350

Polycab has reversed its short-term weakness by negating the lower highs–lower lows pattern seen over the last four sessions. The stock remains in a strong overall uptrend and has formed a bullish candle on the daily chart, consistently taking support at the 20 DEMA. The RSI is on the verge of a bullish crossover, indicating strengthening momentum that may fuel further upside.

Buy Jio Financial Services| CMP:₹321| Stop-loss:₹311| Target:₹340

Jio Finance has successfully retested its breakout zone on the daily chart and resumed its upward trajectory. A bullish marubozu candle on the daily scale signals strong buying interest and complete control by bulls. In addition, the MACD is showing a positive setup, supporting the ongoing bullish momentum.

Buy PI Industries| CMP:₹4,249| Stop-loss:₹4,100| Target:₹4,550

PI Industries is poised for a potential breakout above the 4275 resistance zone, backed by a strong bullish candle surge in trading volumes. The stock structure remains positive, with RSI indicating bullish strength. A confirmed breakout could lead to a swift move toward higher targets.

(Disclaimer: This article is by Chandan Taparia, head derivatives & technicals, wealth management, Motilal Oswal Financial Services.)