Indian stock market: Benchmark indices, the Nifty 50 and the Sensex, resumed their decline on Thursday, August 8, unable to maintain the strong gains from the previous session.
The Nifty 50 ended the day down 181 points, or 0.74%, closing at 24,117, while the Sensex dropped 582 points, or 0.73%, to settle at 78,886.22.
The mid and small-cap indices on the BSE also declined, but they outperformed the benchmarks since their drop was less pronounced compared to the benchmark Sensex.
“Nifty index opened negative and witnessed swings throughout the day. It dropped in the initial hour, to later recover and again slip in the second half of the session. It formed a Bearish candle on daily frame and saw a tug of war between the bulls and bears. Now it has to cross and hold above 24200 zones for an up move towards 24350 then 24500 zones whereas supports are placed at 23950 then 23800 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL.
India VIX was up by 2.67% from 16.17 to 16.60 levels. Overall higher volatility has been creating some swings in a broader trading range in the market.
On option front, Maximum Call OI is at 25000 then 24500 strike while Maximum Put OI is at 23000 then 24000 strike. Call writing is seen at 25500 then 24300 strike while Put writing is seen at 23000 then 24200 strike. Option data suggests a broader trading range in between 23600 to 24600 zones while an immediate range between 23800 to 24400 levels.
On Bank Nifty outlook Taparia further added, “Bank Nifty Index opened on a flattish note but remained choppy in a wider range of 400 points for most part of the session. It formed a small Bodied candle on daily scale as momentum is missing on either sides. Index has got stuck in wider range of 1000 points from last four sessions and stock specific action is seen within banking space. Now till it holds below 50350 zones some weakness could be seen towards 49750 then 49500 levels while on the upside hurdle is seen at 50500 then 50750 zones.”
Chandan Taparia has recommended three stocks to buy today, August 9. According to him, these stocks – Alkem Lab, HDFC Bank, ABB – are technically placed to see a decent upmove.
Alkem has given range breakout on weekly chart with noticeable volumes. It has formed a strong bullish candle on daily scale. Buying is visible across Pharma & Health care space which may support the ongoing up move.
Hdfc bank has formed base near 1590-1600 zones and respecting 50 DEMA. The MACD Line has crossed the signal line from below indicating upward buying momentum.
ABB is in overall uptrend and took support near 7600 zones. It is trading above all crucial moving averages with base shifting upwards. The Money Flow Index has turned up from the centre line which suggests inflow of money.
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.
