Shares to buy or sell: The Indian market ended on a subdued note for the second consecutive session on Thursday, October 10, despite positive signals from global and Asian markets. Selling pressure in IT and pharma stocks kept the main indices close to their previous day's levels.
“Nifty Index opened positive but failed to sustain after its first hour and got stuck in the second half of the session. It moved in a narrow range of 150 points throughout the day and struggled to close near 25k marks. It formed a small bodied bearish candle and an inside bar on daily frame. The good part is that it has been making higher lows from the last three sessions but pressure is intact at any small bounce. Now till it holds below 25150 zones, weakness could be seen towards 24850 then 24750 zones whereas hurdles are placed at 25150 then 25350 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Wealth Management, MOFSL.
On option front, Maximum Call OI is at 26000 then 25000 strike while Maximum Put OI is at 25000 then 24000 strike. Call writing is seen at 25000 then 26000 strike while Put writing is seen at 25000 then 24000 strike. Option data suggests a broader trading range in between 24600 to 25500 zones while an immediate range between 24800 to 25300 levels.
On the Bank Nifty outlook, Taparia further added, “Bank Nifty Index opened on a positive note and witnessed steady buying momentum in the entire trading session as the index tested 51600 zone. The rally was led by strong momentum in Private bank heavyweights. It formed a bullish candle on the daily scale and is now approaching its 50 DEMA. The index is trading within the range of the strong bearish candle made on 7th October (51784-50194). Now till it holds below 51750 zones weakness could be seen towards 51000 then 50750 levels while on the upside hurdle is seen at 51750 then 52000 zones.”
Stock has crossed above its 50 DEMA which suggests a change in trend to bullish. Buying was visible across the realty space which may support the uptrend. The Stochastic Indicator has bounced up from oversold zones which could support the up move.
Price has formed an inverted hammer near support levels and has reversed up with high buying volumes. The RSI indicator is rising which confirms the bullish momentum.
A Double Bottom pattern has appeared on the daily chart with an upward breakout which suggest a possible trend reversal. The MACD indicator has given a bullish crossover which supports the possible uptrend.
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.
