Indian Market Poised to Rise on Wednesday, Following Positive Global Cues
On Tuesday, the S&P BSE Sensex surged by over 400 points, with the Nifty50 closing above the 18700 level. This positive momentum was driven by encouraging global trends.
India VIX, a measure of market volatility, decreased by 1.16% from 11.24 to 11.11 levels. This decrease in volatility provided some relief to investors operating in higher ranges. In terms of options, the maximum Call Open Interest (OI) for the week is concentrated around the 18900 and 18700 strikes, while the maximum Put OI is centered around the 18700 and 18600 strikes. There was some minor Call writing observed at the 18900 and 18800 strikes, whereas significant Put writing was noticed at the 18700 and 18650 strikes.
Chandan Taparia, an Analyst-Derivatives at Motilal Oswal Financial Services Limited, interpreted the options data and suggested a broader trading range between 18500 and 18900 zones, with an immediate trading range of 18600 to 18800 zones.
Taparia also stated, “Nifty formed a Bullish candle on the daily scale, and bulls demonstrated a strong closing after days of lackluster movement. Now, for an upward movement, the index needs to maintain a level above 18676, targeting 18777 and 18888 zones. On the downside, support can be expected at 18636 and 18550 zones.”
Nagaraj Shetti, a Technical and Derivative Analyst at HDFC Securities, shared his expertise with ETBureau and offered the following stock recommendations:
- Crompton Greaves Consumer Electricals Ltd: Buy | Target Price: Rs 302 | Stop Loss: Rs 279
- Prism Johnson: Buy | Target Price: Rs 137 | Stop Loss: Rs 125
- Havells India: Buy | Target Price: Rs 1450 | Stop Loss: Rs 1300
- DLF: Buy | Target Price: Rs 525 | Stop Loss: Rs 488
- Ujjivan Financial Services: Buy | Target Price: Rs 415 | Stop Loss: Rs 380
