 "Nifty outlook, 3 stock picks for today by Chandan Taparia of MOFSL")
Nifty share price
Nifty index opened flattish and made an attempt to cross 25,500 zones but faced resistance near the same and sank to its day’s low of 25,424 levels in the first hour on Tuesday. It gradually escalated upwards but moved in a subdued manner for most part of the day with a swift comeback of the bulls in the last hour. It moved towards 25,550 zones and closed near its higher band with gains of around 60 points. It formed a bullish candle on daily frame and has decisively come out of its range of the last few sessions. Now, it has to hold above 25,500 zones for an up move towards 25,650 then 25,800 zones whereas supports have shifted higher to 25,400 then 25,300 zones.
On option front, Maximum Call OI is at 26,000 then 25,500 strike while Maximum Put OI is at 25,400 then 25,000 strike. Call writing is seen at 25,800 then 25,700 strike while Put writing is seen at 25,400 then 25,450 strike. Option data suggests a broader trading range in between 25,000 to 26,000 zones while an immediate range between 25,300 to 25,800 levels.
Bank Nifty share price
Bank Nifty index opened on a flattish note and good momentum was seen towards 57,250 zones in the initial hour of the session. Later it remained consolidative in a narrow range of 250 points with overall positive bias and extended the move towards 57,300 marks. It formed a bullish candle on daily scale as buying interest is visible at lower levels and Index is taking support near its 10 DEMA. Now it needs to hold above 57,000 zones for an up move towards 57,500 then new life high territory towards 57,750 zones while on the downside support is seen at 57,000 then 56,750 levels.
Stocks to buy today
Buy NTPC | CMP: ₹343 | Stop-loss: ₹333 | Target: ₹365
Stock has broken out of a falling supply trend-line on the daily chart with a strong bodied bullish candle. The RSI indicator is rising which confirms the positive momentum.
Buy SRF | CMP: ₹3,286 | Stop-loss: ₹3,170 | Target: ₹3,500
Price has given a range breakout on at "All Time High" zones. It is respecting its 50 DEMA with slight dips being bought into. The MACD line is positively placed which has bullish implications.
Buy Hindustan Petroleum | CMP: ₹452 | Stop-loss: ₹440 | Target: ₹480
Stock is on the verge of breaking out from a consolidation zone on the daily scale. The ADX line is rising which confirms the strength of the bullish trend. (Disclaimer: This article is by Chandan Taparia, head derivatives & technicals, wealth management, Motilal Oswal Financial Services.)