According to stock market watchers, a small positive candle formed on the daily chart at the lows, with an upper and lower shadow. Technically, this pattern indicates a high wave type candle pattern formation. Normally, such a high wave formation after a reasonable upward or downward move acts more often as a reversal pattern, after the confirmation. There is therefore a possibility of a rebound in the short term.
Stock market today: Nifty outlook, Bank Nifty
"Nifty's short-term trend continues to be choppy. Thursday's support candle formation and overall chart pattern signal the possibility of a near-term bullish bounce. Immediate support for NSE Nifty is placed at 17530 and the next overhead resistance to watch at the 17750 level," said Nagaraj Shetti, technical research analyst at HDFC Securities.
On what is hurting bull sentiment, Ruchit Jain, Lead Research at 5paisa.com, said, "The Bank Nifty Index corrected sharply as traders were seen unwinding positions in the space that had shown relative outperformance in the recent past The trigger for the markets was led by the currency which saw a break after the consolidation of the last few weeks and depreciated sharply to reach new lows Our equity markets have recently outperformed the global markets mainly due to the outperformance of the INR despite the rise in the dollar index.a forex move above 80 certainly does not bode well for the equity market and hence the risk continues to remain high in the short term."
Ruchit Jain continued by adding, "Momentum readings on Bank Nifty, which has been the relative outperformer so far, also turned negative. Immediate support for the Bank Nifty index is placed around its support" 20 DEMA" of 40245 and a violation of this could then lead to further price correction. Traders are advised to closely monitor the movement of currencies and global markets which are likely to dictate short-term movements.
Nifty call put option data
Speaking on the Nifty call sell ratio, Shilpa Rout, Principal Derivatives Analyst at Prabhudas Lilladher, said: "The Nifty options chain for weekly expiry reflects a wide range between 16000 and 19000 zones, as the maximum contract additions sit at 16,000PE - over 90,000 contracts and 19,000 CE - over 1.4 lakh contracts. either side will show more movement for the INDEX in the future.
Bank Nifty Call Put Options Data
"The Bank Nifty Future Option channel reflects that PE writers are active at 40,000/39,500 strikes - overall above 50,000 contracts each, CE writers continue to be aggressively active through 45,000 strikes - the highest new additions of over 40,000 contracts," added Shilpa Rout.
Day trading stocks
On stocks to buy today, equity market experts - Mehul Kothari, AVP - Technical Research at Anand Rathi and Ravi Singh, VP and Head of Research at Share India - have listed 4 buy stocks or sale for today.
Mehul Kothari's action recommendations
1]Tech Mahindra: Buy on ₹1049 target ₹1090, stop loss ₹1030
2]Gujarat Gas: Buy on ₹520 target ₹560, stop loss ₹500
Ravi Singh shares to buy today
3]Titan Company: Buy on ₹2740 target ₹2850, stop loss ₹2700
4]Ashok Leyland: Buy on ₹164 target ₹175, stop loss ₹161.
Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.
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