F&O Strategy: Rupak De, Senior Technical Analyst at LKP Securities, offers technical insights on the F&O market. De recommends purchasing Power Grid Corporation of India, Can Fin Homes Ltd., and Cochin Shipyard Ltd.
Today's stock market: Following weakness in their regional counterparts following US President Donald Trump's imposition of massive tariffs on China, Canada, and Mexico, which sparked fears of a potential trade war, the local benchmark indices, the Sensex and Nifty 50, fell on Monday.As of 11:42 IST, the Sensex had dropped 0.76% to 76,916.23, while the Nifty 50 had dropped 0.97% to 23,255.05 levels. Trump's tariffs sparked concerns about how they would affect global growth, which caused Asian stock markets to decline. According to sources, the MSCI Asia ex-Japan index fell by nearly 3%.
All 13 of the major domestic equity sectors saw a drop, with small and mid-cap stocks that were concentrated on the home market dropping 1.9% and 1.3%, respectively. As other regional currencies declined, the Indian rupee plummeted for the first time below 87 to the US dollar. Analysts stated that just 56.5% of the most actively traded F&O stocks closed above their respective 10-day SMAs on Budget Day, whereas 67% did so on Friday.
Rupak De, Senior Technical Analyst at LKP Securities, provides technical insights on the F&O market.
Nifty 50.
There was a lot of volatility in the Nifty 50 during the Budget session. The development of a small-bodied candle on the daily chart indicates market hesitancy. The trend is probably going to stay favorable as long as the index stays above its support level of 23,280. On the plus side, the Nifty 50 could rise in the near future to 23,700–24,000. A decline below 23,280, though, might cause market panic.
Open Interest Analysis: The activity in the Nifty 50 weekly options on the second day showed that the new weekly series got off to a strong start with CALL writing. PUT open interest saw a net addition of just 1.2 cr, while CALL open interest saw a net addition of 2.82 cr.
Open Interest Analysis: The activity in the Nifty 50 weekly options on the second day showed that the new weekly series got off to a strong start with CALL writing. PUT open interest saw a net addition of just 1.2 cr, while CALL open interest saw a net addition of 2.82 cr.
Strategy: A strong CALL writing at 23,500 indicates a mark that the Nifty 50 may find difficult to cross; a decline below 23,450 might soon lead to selling pressure.
Purchase the Nifty 50 6FEB 23300PE above 90 with a stop loss at 59 and a target at 150.
Weekly technical stock recommendations
Purchase Can Fin Homes Ltd. for 668 naira | Goal: 710 naira | Stop Loss: 648 naira
On the daily chart, the stock has created a Piercing Line pattern, suggesting a possible short-term bullish reversal. Additionally, it formed a double bottom by finding support near the low of its previous swing. Further supporting the possibility of a recovery is the RSI's bullish crossover with positive divergence. A recovery is anticipated given the technical situation, with a potential upside toward 710, while support is placed at ₹648.
Purchase the Nifty 50 6FEB 23300PE above 90 with a stop loss at 59 and a target at 150.
Weekly technical stock recommendations
Purchase Can Fin Homes Ltd. for 668 naira | Goal: 710 naira | Stop Loss: 648 naira
On the daily chart, the stock has created a Piercing Line pattern, suggesting a possible short-term bullish reversal. Additionally, it formed a double bottom by finding support near the low of its previous swing. Further supporting the possibility of a recovery is the RSI's bullish crossover with positive divergence. A recovery is anticipated given the technical situation, with a potential upside toward 710, while support is placed at ₹648.
Buy Cochin Shipyard Ltd at ₹1,537 | Target: ₹1,670 | Stop Loss: ₹1,478
Buy Power Grid Corporation of India at ₹302 | Target: ₹320 | Stop Loss: ₹292
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