Indian stock market: Market indices Sensex and Nifty reached new closing highs on Monday, July 15, driven by gains in select index heavyweights including SBI, ONGC, NTPC, and ITC.
The Nifty 50 reached a new record peak of 24,635.05 during the session, ultimately closing 85 points higher at 24,586.70, an increase of 0.35 percent. Meanwhile, the Sensex peaked at 80,862.54, coming within 31 points of its previous all-time high of 80,893.51 set in the prior session on July 12. However, it concluded the day at a new closing high of 80,664.86, marking a gain of 146 points or 0.18 percent.
“Nifty index opened gap up and steadily escalated to touch a fresh all time high of 24635 zones. It remained afloat with some range bound move towards the end and closed with gains of around 80 points. It formed a small bodied Bullish candle with longer lower shadow indicating sustained buying. Now it has to hold above 24500 zones for a fresh up move towards 24750 and 24900 zones whereas supports are placed at 24450 then 24330 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL.
India VIX was up by 2.82% from 13.72 to 14.11 levels. Volatility slightly inched higher but is hovering at its lower zones which is comforting the bulls to add momentum.
On option front, Maximum Call OI is at 25000 then 24900 strike while Maximum Put OI is at 24000 then 24500 strike. Call writing is seen at 25000 then 24600 strike while Put writing is seen at 24600 then 24500 strike. Option data suggests a broader trading range in between 24200 to 25000 zones while an immediate range between 24400 to 24800 levels.
Bank Nifty
On the Bank Nifty outlook, Taparia further added, “Bank Nifty Index opened on a flattish note and drifted lower towards 52150 zones in the first hour of the session. However quick recovery was seen from lower zones and it extended the momentum towards 52660 levels in the latter part of the day. It formed a small Bullish candle on daily scale and ended with gains near 52500 zones. Index has got stuck in wider range in between 52000 to 52800 zones from the last few sessions as momentum is missing on either sides. Now it has to continue to hold above 52250 zones for an up move towards 52850 then 53000 levels while on the downside support is seen at 52250 then 52000 levels.”
Chandan Taparia has recommended three stocks to buy tomorrow, July 16. According to him, these stocks – GAIL, State Bank of India, Apollo Tyres – are technically placed to see a decent upmove.
Stocks to buy
GAIL: Buy at ₹237 | Target Price: ₹252 | Stop Loss: ₹231
GAIL has given range breakout on daily chart; retested the same and inching higher. Buying is visible across Oil & Gas space which may support the ongoing up move.
State Bank of India: Buy at ₹881 | Target Price: ₹920 | Stop Loss: ₹865
SBIN has given range breakout on daily chart and managed to hold above the same. It has formed a strong bullish candle on daily scale and supports are gradually shifting higher.
Apollo Tyres: Buy at ₹539 | Target Price: ₹560 | Stop Loss: ₹528
APOLLO TYRES is in overall uptrend and gave trend line breakout on daily chart. Breakout is supported by surge in volumes which has bullish implications.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.