Nifty, Bank Nifty outlook; TVS Motor among 3 stock ideas by Motilal Oswal

Nifty 50 index needs to hold above 24,000 for an up move towards the 24,200 and 24,300 zones, while support can be seen at 23,900 then 23,800 zones.

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

 

The Nifty index opened with a gap-up of around 160 points and witnessed sustained buying throughout the session as bulls defended its crucial support zones, helping the index extend its gains and close near the higher band of the 24K mark. It formed a Doji-type candle on the daily frame and is forming higher highs and higher lows over the last two trading sessions. Now it needs to hold above the 24,000 zone for an up move towards 24,200, then 24,300 zones, while support can be seen at 23,900, then 23,800 zones. 

 

 

On the option front, Maximum Call OI is at 24,000, then 25,000 strike, while Maximum Put OI is at 24,000, then 23,000 strike. Call writing is seen at 24,000 then 24,700 strike, while Put writing is seen at 24,000 then 23,700 strike. Option data suggests a broader trading range between 23,600 and 24,400 zones, while an immediate range between 23,800 and 24,200 levels.

 

Bank Nifty index opened on a negative note near 56,850 levels, but some recovery was visible towards 57,000 zones in the first half of the session. However, it failed to hold 57,000 levels and gradually drifted lower towards 56,700 levels in the latter part of the session. It formed a small bearish candle on the daily scale as selling pressure was seen at higher zones but is holding above its 200-DEMA. Now it has to cross and hold above the 56,750 zone for a bounce towards 57,000, then 57,250 levels, while a hold below the same could see some weakness towards 56,250, then 56,000 zones.  Also Read | Nifty50 spends 100 trading days below 200-DMA, longest in a decade

 

Buy TVS MOTOR | CMP: ₹3,993 | Stop loss: ₹3,870 | Target: ₹4,230

 

TVS Motor's stock has given a breakout from a consolidation zone with a strong-bodied bullish candle and higher-than-average traded volumes. The MACD indicator is rising, which confirms the positive momentum.

 

Buy NAUKRI | CMP: ₹1,236 | Stop loss: ₹1,200 | Target: ₹1,310

 

Info Edge (Naukri) has formed a bullish “Pole and Flag” pattern suggesting a continuation of the uptrend. It has also given a golden crossover to confirm the uptrend. The ADX line is rising, which suggests the Bullish trend has strength to support it.

 

Buy GODREJ PROP | CMP: ₹2,136 | Stop loss: ₹2,070 | Target: ₹2,265

 

Godrej Properties' share is retesting its breakout from a consolidation zone with a strong bodied bullish candle.  It is respecting its 200 DEMA support zones. The RSI momentum indicator is positively placed which has bullish implications.