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TVS Motors stock has broken out of a consolidation zone on the daily chart with a strong bodied bullish candle and higher than average traded volumes.

The Nifty index opened on a flat note around the 24730 level but faced strong selling pressure in the first hour, dragging it down towards the 24600 zone. For the rest of the day, the index traded in a narrow range of 60 to 70 points, showing a clear lack of momentum. Bears tried multiple times to break below the 24600 level but bulls managed to defend it and pushed the index slightly higher. On the daily chart, Nifty formed multiple inside bars, which signals indecision and a lack of strong direction on either side. The index is currently hovering around its 100 day EMA and any close below this level may lead to further weakness. Now if it holds above 24600 zones, then bounce could be seen towards 24800 then 24900 zones else weakness can be seen towards 24550 and 24442 zones.

 

On option front, Maximum Call OI is at 24700 then 25000 strike while Maximum Put OI is at 24600 then 24500 strike. Call writing is seen at 24600 then 24700 strike while Put writing is seen at 24600 then 24500 strike. Option data suggests a broader trading range in between 24200 to 25200 zones while an immediate range between 24400 to 24900 levels.

 

Bank Nifty index opened on a negative note and gradually drifted lower towards 55200 zones at the latter part of the session. It formed a small Bearish candle on a daily scale and formed lower highs from the last few sessions as selling pressure is seen at higher zones. The Rate sensitive Index has seen a corrective move of more than 1000 points in the last few days as banking heavyweights continue to underperform. Now till it holds below 55555 zones some weakness could be seen towards 55000 then 54750 zones while on the upside hurdle is seen at 55555 then 55750 levels.

 

Buy TVS Motor | CMP: ₹2983 | SL: ₹2875 | TGT: ₹3185

 

TVS Motor stock has broken out of a consolidation zone on the daily chart with a strong bodied bullish candle and higher than average traded volumes. The MACD indicator has given a bullish crossover to confirm the positive momentum.

 

Buy SBI Life | CMP: ₹1857 SL: ₹1795 TGT: ₹1965    

 

SBI Life stock has given a range breakout on the daily chart with a surge in volumes to support the up move. Buying was visible across the insurance space which may support the up move. The RSI indicator is positively placed which has bullish implications.

 

Buy Jindal Steel | CMP: ₹1000 | SL: ₹977 | TGT: ₹1050                                   

 

Jindal Steel stock is in an overall uptrend and is respecting its 50 DEMA with slight dips being bought into. The ADX line has turned up which confirms the strength of the uptrend.

 

(Disclaimer: Chandan Taparia is the head of derivatives and technicals, wealth management at Motilal Oswal Financial Services.)