Nifty, Bank Nifty outlook; HUL, Nykaa among analyst top stock picks today

Till Nifty holds below 24,850 zones weakness could be seen towards 24,650 then 24,500 zones while hurdles can be seen at 24,850 then 25,000 zones.

The Nifty index opened negative and slipped right from the initial hour and each upward attempt was swiftly met with selling pressure. It breached its immediate support zones and broke 24,700 levels in the last hour of the trade. It formed a big bearish candle on the daily frame and closed with losses of around 260 points. Now till it holds below 24,850 zones weakness could be seen towards 24,650 then 24,500 zones while hurdles can be seen at 24,850 then 25,000 zones.

 

On option front, Maximum Call OI is at 25,000 then 24,800 strike while Maximum Put OI is at 24,700 then 24,500 strike. Call writing is seen at 24,800 then 24,900 strike while Put writing is seen at 24,750 then 24,700 strike. Option data suggests a broader trading range in between 24,200 to 25,200 zones while an immediate range between 24,500 to 24,900 levels.

 

 

Bank Nifty index opened on a negative note and remained under selling pressure as it drifted lower towards 54,450 zones in the latter part of the session. It formed a bearish candle and gave a range breakdown on daily scale after twelve sessions as bears are holding tight grip at higher zones. It corrected by almost 1,500 points in the last few sessions to close below its 100 DEMA. Now till it holds below 54,750 zones some weakness could be seen towards 54,000 then 53,750 levels while on the upside hurdle is seen at 54,750 then 55,000 zones.

Buy Hindustan Unilever | CMP: ₹2,692 | Stop-loss: ₹2,600 | Target: ₹2,860

Stock has formed a bullish “Mat Hold” pattern on the daily chart which suggests a continuation of the uptrend. It is respecting its 20 DEMA with slight dips being bought into. The RSI indicator is rising which confirms the strength of the bullish trend.  

Buy NYKAA | CMP: ₹231 | Stop-loss: ₹223 | Target: ₹250

Stock has given a range breakout on the daily chart with higher than average traded volumes. The MACD indicator has given a bullish crossover which confirms the positive momentum.  

Buy Eicher Motors | CMP: ₹6,151 | Stop-loss: ₹5,932 | Target: ₹6,610

Stock has given a breakout from a bullish “Pole & Flag” pattern with a massive bullish candle. Buying was visible across the auto space which may support the up move.  The ADX line is rising which confirms the strength of the uptrend.  (Disclaimer: This article is by Chandan Taparia, head derivatives & technicals, wealth management, Motilal Oswal Financial Services. Views expressed are his own.)