F&O Strategy: Eternal to Torrent Pharma— Rupak De suggests buy or sell strategy for THESE stocks

Stock market today: The key domestic indices, Nifty 50 and Sensex, were on track for their fifth consecutive day of increases on Monday, supported by a weaker US dollar and a rise in bank stocks within the country.

As of 13:10 IST, the Nifty 50 rose by 1.40% to reach 24,186.25, while the Sensex climbed 1.36% to reach 79,622.30. Both indices reached their highest values since January 6. Following strong earnings reports, ICICI Bank and HDFC Bank, the top two stocks on the Nifty 50, jumped by 0.9% and 1.3%, respectively, achieving record highs.

Suresh Ganapathy, managing director and head of financial services research at Macquarie Capital, noted that financials are seen as a clear consensus overweight, especially since they underperformed in the last market rally cycle, and their current valuations are quite appealing, according to a Reuters report. Moreover, foreign investments are on the rise, with the anticipation that financials will be less affected by US tariffs, he added.

On the derivatives front, technical analysts, observed a blend of long build-up and short covering in both key indices over the week. The Long-Short Ratio rose from 25% to 30% week-on-week. With strong buying witnessed in Thursday’s session, a follow-through move towards 24,000 appears likely, while dips around 23,600–23,700 may present opportunities to add fresh longs.

FIIs were net buyers in the cash market segment, buying stocks worth ₹4,667 crore. In the Index futures segment, they were net buyers worth ₹439 crores with a rise in OI, indicating long formation.

Technical views by Rupak De, Senior Technical Analyst, LKP Securities on F&O market:

Nifty 50

The index witnessed an impressive rally, with the Nifty closing above its previous swing high (on a closing basis). This sharp upward move has propelled the index above the 100-day EMA on the daily chart, indicating a strengthening midterm bullish trend.

In the near term, the momentum is likely to continue, with the Nifty eyeing a potential move towards 24,100. A decisive break above this level could pave the way for an advance towards 24,500. On the downside, immediate support is seen at 23,650, followed by 23,300.

Open Interest Analysis: Significant open interest additions were observed in both the 23,850 Puts and Calls. Call writing was relatively muted on Friday, with the highest OI buildup seen at the 24,200 CE. Meanwhile, substantial put writing at the 23,500 strike indicates strong support around that level.

Strategy: Sentiment is likely to remain strong unless it falls below 23,500.

Trade: Buy Nifty 50 24 Apr 24,000CE Above 130 TGT 180 SL 100.

Buy Eternal at ₹230-232 with a TGT of ₹250 and SL of ₹219

The Eternal share price has given a breakout from a falling wedge pattern, indicating a potential shift in momentum from downtrend to uptrend. Adding strength to this breakout, the price has successfully moved above the 50-day Exponential Moving Average (EMA), signalling growing bullish sentiment and improved price stability. Additionally, the Relative Strength Index (RSI) has exhibited a bullish crossover, further reinforcing the positive momentum.

In the short term, the trend is likely to continue towards higher levels. On the upside, the stock may move towards ₹250, while support is placed at ₹219. A break below this level could lead to weakness.

Buy Indian Oil Corporation (IOC) at ₹134 with a TGT of ₹144 and SL of ₹129

IOC share price has recently given a consolidation breakout on the weekly chart, suggesting a growing buying interest and a shift in market sentiment toward optimism. Additionally, the price has closed above the critical 100-week EMA (exponential moving average), confirming a strong trend. The momentum indicator RSI is also showing a bullish crossover. In the short term, the trend is likely to continue towards higher levels. On the upside, the stock may move towards ₹144, while support is placed at ₹129.

Buy Torrent Pharmaceuticals at ₹3,254 with a TGT ₹3,500 and SL of ₹3,187

In the last few days the stock has been sustaining above the critical moving average on the daily chart, suggesting an ongoing momentum. Besides, the price moved above the 200DMA, suggesting a change in the medium term trend in the price. The RSI is in bullish crossover and rising. In the short term, the trend is likely to continue towards higher levels. On the upside, the stock may move towards ₹3,500, while support is placed at ₹3,187.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.