Market outlook, Jan 7: Nifty seen trading between 26,000 to 26,400

According to Chandan Taparia of Motilal Oswal, Nifty has broken its higher highs - higher lows formation. Read more to find out Nifty strategy, Bank Nifty outlook, and stock recommendations for today

Nifty share price today, Jan 7

Nifty50 index opened negative on Tuesday, on account of dampened global cues and went southwards for most part of the day. It was followed by some consolidation towards the end but closed in losses of around 70 points. Nifty share price formed a small bodied candle on the daily frame and broke its higher highs – higher lows formation of the last four sessions.  Now it has to cross and hold above 26,200 zones for an up move towards 26,350 and 26,500 zones, while support can be seen at 26,050 then 25,950 zones.

 

On the option front, Maximum Call Open Interest (OI) is at 26,200, then 26,500 strike, while Maximum Put Open Interests (OI) is at 26,000, then 26,200 strike. Call writing is seen at 26,200, then 26,500 strike, while Put writing is seen at 25,700, then 26,200 strike. Option data suggests a broader trading range in between 25,800 to 26,600 zones while an immediate range between 26,000 to 26,400 levels.

 

 

Nifty Bank share price today

 

The Nifty Bank index opened on a negative note yesterday, near 59,950 levels, but a quick recovery was seen from lower zones towards 60,300 levels in the initial hour of the session.  Later it remained consolidative in a narrow range of 200 points between 60,000 to 60,200 zones. It formed a small bodied candle on daily scale as buying is visible at lower levels but momentum is missing at higher zones. Now it has to hold above 60,000 zones for an up move towards 60,437 marks then 60,750 zones while on the downside support is seen at 59,750 then 59,500 levels.

 

Stocks to buy: Chandan Taparia stock recommendations

 

Buy TATA Consumer Products | CMP: ₹1,210 | Stop Loss: ₹1,175 | Target Price: ₹1,265 

Tata Consumer share price has given a range breakout with a strong bodied bullish candle. It has also bounced up from its 50 Double Exponential Average (DEMA) support zones. The relative strength index (RSI) indicator is positively placed which has bullish implications.     

Buy Max Financial Services | CMP: ₹1,731 | Stop Loss: ₹1,665 | Target Price: ₹1,885

 

Max Financial share price has broken out from a trendline with higher than average traded volumes on the daily chart. The Moving Average Convergence and Divergence (MACD) indicator has given a bullish crossover to confirm the upwards momentum.         

 

Buy IndusInd Bank | CMP: ₹914 | Stop Loss: ₹875 | Target Price: ₹995

 

IndusInd Bank share price has breached above its resistance zones and surpassed above its 200 Double Exponential Moving Average (DEMA) with a surge in traded volumes. The Average Directional Index (ADX) line has turned up which confirms the strength of the bullish reversal.        ==============  Disclaimer: This article is by Chandan Taparia, head derivatives & technicals, wealth management at Motilal Oswal Financial Services. Views expressed are his own.