Nifty, Bank Nifty outlook; AB Capital, Federal Bank on analyst radar today

AB Capital is in overall uptrend and perfectly respecting 20 DEMA, while Federal Bank has given consolidation breakout on daily chart and formed a strong bullish candle

Nifty view today

Nifty index opened negative and continued the selling stance and broke its immediate support levels of 25,750 zones. It attempted some recovery post the initial sell off but again gave up towards the end of the session and closed with losses of around 120 points. It formed a small bodied bearish candle on the daily frame and has been making lower highs – lower lows from the last two sessions. Now till it holds below 25,900 marks, index may face some weakness towards 25,750 then 25,600 zones while hurdles have shifted lower to 26,000 then 26,150 zones.

 

On option front, Maximum Call OI is at 26,000 then 26,300 strike while Maximum Put OI is at 25,500 then 25,400 strike. Call writing is seen at 26,000 then 25,900 strike while Put writing is seen at 25,400 then 25,800 strike. Option data suggests a broader trading range in between 25,400 to 26,300 zones while an immediate range between 25,600 to 26,100 levels.

Bank Nifty view

Bank Nifty index opened on a negative note and drifted towards 58,900 zones in the initial hour of the session. Later gradual recovery was seen from lower levels towards 59,350 zones but it remained choppy in narrow range of 200 points between 59,100 to 59,300 levels. It formed a small bodied candle on daily scale as buying interest is visible at lower levels but momentum is missing at higher zones. Now till it holds below 59,500 zones some weakness could be seen towards 59,000 then 58,750 levels while on the upside hurdle is seen at 59,500 then 59750 zones.  ALSO READ | Gujarat Pipavav, ESAB India among top stocks to buy today; check key levels

Buy Aditya Birla Capital | CMP: ₹364 | Stop-loss: ₹353 | Target: ₹385

 

Aditya Birla Capital  stock is in overall uptrend and perfectly respecting 20 DEMA. It has given range breakout and highest daily close ever which has bullish implications. RSI indicator is rising which supports the up move.

 

Buy Federal Bank | CMP: ₹260 | Stop-loss: ₹252 | Target: ₹275

 

Federal Bank stock has given consolidation breakout on daily chart and formed a strong bullish candle. It is continuously forming higher highs from past nine weeks and base is shifting higher. MACD indicator is positively placed which has bullish implications.    

Sell Dalmia Bharat 30th Dec FUT | CMP: ₹1,974 | Stop-loss: ₹2,015 | Target: ₹1,870

 

Dalmia Bharat stock has given a consolidation breakdown from crucial supports and holding below 20 DEMA. MACD indicator is in negative territory which confirms the price move.

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