Nifty 50 trends remain positive; Indian Bank, IRFC among top technical picks by Rupak De of LKP Securities

Stock market today: On Monday, the Nifty 50 reached all-time highs driven by information technology stocks, as demand in the sector appeared to be rebounding based on the results of leading IT businesses.

The Nifty 50 reached a record high of 24,598, up around 0.4%. As of 10:15 a.m. IST, it was up 0.25%, while the Sensex gained 0.2% to 80,654 points, slightly below the record high levels reached on Friday.

The Indian stock market saw robust trade last week, as the benchmark index continued to rise and set new records. For the sixth week in a row, the market continued its winning streak.

"In the derivatives segment, we observed the addition of long positions in the benchmark index, while long unwindings were seen in Bank Nifty on a weekly basis. For the upcoming weekly series, there is a significant pile-up of positions at the 24,500-24,400 PE, indicating an upshift in the support. While on the higher end, scattered positioning is observed for 24,700-24,900 call strikes," said Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One.

According to Bhosale, FIIs remain buoyant, with their mixed bets in cash and futures, leading to a slight cool-down in the Long Short Ratio to 79% from 84% on WoW. Given these developments, the market's mood is still positive, but there is expected to be higher volatility in the upcoming sessions.

Technical views by Rupak De, Senior Technical Analyst, LKP Securities on F&O market

Bank Nifty

For Bank Nifty the last expiry date was Wednesday, July 10. According to Rupak De, the Bank Nifty remained volatile throughout the day before closing flat. Sentiment might continue to favor the bulls, as the index appears to have found support at the 21 EMA on the daily timeframe on Thursday. The buy-on-dips strategy looks best from the current perspective until it falls below 21,700. On the higher end, resistance is visible at 52,800; above 52,800, the index might continue its upward journey towards 54,000.

Open Interest Analysis: Significant additions were seen in the open interest at the 52,500 PUT and 52,300 PUT, while CALL writers added substantial positions at the 52,700, and 53,000 strikes on the first day of the current expiry. Maximum CALL open interest was seen at the 53,000 strike, whereas maximum PUT open interest was seen at 52,000, indicating a broader range for the market.

Nifty 50

For Nifty 50 the last expiry date was Thursday, July 11. The Nifty 50 has given a consolidation breakout on the daily chart, driven by a strong technical breakout in IT giants. The sentiment looks positive from here, as the indicators and popular overlays indicate a continuation of strength. Support is visible at 24,400, where significant short buildup has been seen by the put writers. The buy-on-dips strategy should favour the street until Nifty 50 falls below 24,400. On the higher end, the current rally might extend towards 24,800.

Open Interest Analysis: Significant additions were seen in the open interest at the 24,500 CALL and 24,400 CALL, while writers added substantial positions at the 24,700, 24,900, and 25,000 strikes on the first day of the current expiry. Maximum CALL open interest was seen at the 25,000 strike, whereas maximum PUT open interest was seen at 24,000, indicating a broader range for the market.

Technical stock recommendations for the week

Buy Indian Bank at ₹559; Target Price of ₹600; Stop Loss of ₹542

After the consolidation breakout on the daily timeframe, the stock looks promising for the short term. The price has been sustaining above the critical moving average. The RSI is in a bullish crossover and rising. On the higher end, the stock might move towards 600, while support is placed at 542.

Buy Birlasoft Ltd at ₹731; Target Price of ₹800; Stop Loss of ₹700

The stock has given a downward consolidation breakout on the daily chart. The trend remains positive as it has been sustaining above the critical moving average. The daily RSI is in a bullish crossover. On the higher end, the stock might move towards 800, while support is placed at 700.

Buy Indian Railway Finance Corporation Ltd (IRFC) at ₹216.50; Target Price of ₹230; Stop Loss of ₹208

The stock has finally moved up after a consolidation breakout on the daily chart. The trend remains positive as it has been sustaining above critical moving average. daily RSI is in bullish crossover. On the higher end, the stock might move towards 230; while support is placed at 208.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.