The Indian market is likely to open lower on Wednesday tracking muted global cues.
S&P BSE Sensex rose more than 300 points while Nifty50 reclaimed 18,100 levels.
Sectorally, buying was seen in metal, telecom, capital goods, and realty while some selling was seen in FMCG stocks.
Nifty had formed a bullish outside bar on the daily chart on December 26. The follow-through was seen on the upside on December 27.
India VIX was down by 4.02% from 15.93 to 15.29 levels. Volatility cooled off from higher zones which paved way for the bulls to buy the declines in the market.
Experts are of the view that the next big resistance is seen at 18,200 levels while on the downside 18,000-17,800 is likely to lend support.
“18,150-18,200 is the key resistance zone to keep a tab on. If the index manages to surpass 18,200 & sustains in the higher territory, then it can stretch towards 18,400. On the other hand, failure near 18,150-18,200 can drag the Nifty back to 17,800,” Chandan , Analyst-Derivatives at Limited, said.
On the options front, the maximum Call OI is seen at 18,200 then 18,500 strikes while the maximum Put OI is seen at 18,000 then 17,800 strikes.
Minor Call writing is seen at 18,350 then 18,150 strikes while Put writing is seen at 18,000 then 18,100 strike. “Options data suggests a shift in a higher trading range in between 17,800 to 18,300 zones,” added Taparia.
As long as Nifty50 retained 18,000 on a closing basis, experts feel that the trend will remain largely positive.
“On the daily chart, the rally stopped at the 50EMA. As long as Nifty remains above 18,070, the trend appears to be positive. On the higher end, the index may move up towards 18,350. Support on the lower end is placed at 18,070/17,950,” Rupak De, Senior Technical Analyst at
, said.
We have collated stocks from various experts for traders who have a short-term trading horizon:
Expert: Vinay Rajani, Senior Technical and Derivative Research Analyst, Securities told ETBureau
: Buy| Target Rs 86.5| Stop Loss Rs 79
After a sharp correction from the recent swing high of Rs 96.9, the stock tested 50 days SMA and reversed north.
RCF: Buy| Target Rs 127| Stop Loss Rs 110
The stock reached a crucial support of the inverted head and shoulder neckline and turned the trend north.
Expert: Viral Chheda, Technical Analyst, SSJ Finance & Securities told ETMarkets
: Buy| Target Rs 640-700| Time 6-8 months
: Buy| Target Rs 125-140| Time 6-8 months
FACT: Buy| Target Rs 320-400| Time 6-8 months
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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