Indian market is likely to trade higher on Tuesday tracking positive global cues.
S&P BSE Sensex closed over 700 points higher while Nifty50 reclaimed 18000 levels on Monday.
Sectorally, buying was seen in utilities, public sector, power, and metals while some selling was seen in healthcare stocks. The Bank Nifty closed 2.31% higher on Monday with PSU banks leading the rally.
India VIX was down by 1.41% from 16.16 to 15.93 levels. Volatility spiked above 17.2 zones during the day but a cool-off from higher zones paved way for the bulls to buy the declines in the market, suggest experts.
On the upside, Nifty50 could see some resistance near 18200 levels while some support is available around 17950-17700 levels, they say.
“Nifty formed a Bullish Engulfing candle on daily scale on Monday and negated its lower highs of last three trading sessions,” Chandan
, Analyst-Derivatives at Limited, said.
“It has to hold above 17950 zones, for an up move towards 18181 and 18350 zones whereas supports are placed at 17950 and 17777 zones,” he said.
On the Options front, the maximum Call OI is at 18200 then 19000 strikes while the maximum Put OI is seen at 18000, and then towards 17800 strikes.
“Option data suggests a slight shift in a higher trading range in between 17700 to 18300 zones while an immediate range in between 17800 to 18200 zones,” suggests Taparia.
We have collated stocks from various experts for traders who have a short-term trading horizon:
Expert: Ajit Mishra, VP – Technicals, Broking told ETBureau
: Buy| Target Rs 890| Stop Loss Rs 828
The stock has reached closer to the immediate support zone so a rebound is likely.
: Buy| Target Rs 975| Stop Loss Rs 828
The recent dip to major moving averages in Godrej Consumer offers a fresh buying opportunity.
: Sell| Target Rs 3330| Stop Loss Rs 3640
It has formed a distribution pattern. A slide below 3500 could trigger a sharp cut.
DR Reddy’s Laboratories: Sell| Target Rs 3980| Stop Loss Rs 4420
The stock recorded a fresh breakdown from the consolidation range. It can retest the previous swing low soon.
(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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