Nifty 50 trend to remain positive as long as it stays above 24,500; IDBI Bank among top technical picks by Rupak De

Stock market today: In the wake of the global surge, the domesticbenchmark indices, the Sensex and the Nifty 50, began Monday's trading session higher. The Sensex gained 346.93 points, or 0.43%, to reach 81,679.65 points, while the Nifty 50 index began at 24,943.30, up 108.45 points, or 0.44%.

All of the NSE's indices, including the Nifty Midcap, Nifty Small Cap, and Nifty Next 50, opened higher in the broadmarket. The sectors indices continued to rise, kicking off the new week higher.

Top losses on the Nifty 50 list were Dr. Reddy's Laboratories, Tata Consumer Products, Power Grid, Bharti Airtel, and NTPC, BPCL, ICICI Bank, IndusInd Bank, and SBI were the top gainers.

According to Ruchit Jain, Lead Research Analyst at 5paisa, the August series for F&O started with 57 positions long positions by FIIs and around 50 percent long positions by client section which created a room for fresh long positions at the start of the new series. Now since the uptrend has resumed, we could see a continuation of the momentum where next resistances will be seen around the retracement levels of this correction placed around 25,065 and 25,340. On the flipside, 24,550-24,350 will be seen as the immediate support zone on any declines.

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

Bank Nifty

For Bank Nifty the last expiry date was Wednesday, July 24. On the daily chart of Bank Nifty, an outside day pattern has formed, suggesting a possibility of price expansion. Additionally, the index has reclaimed the 50-period exponential moving average. Over the short term, the trend might witness a bullish reversal. Going forward, a move above 51,500 might induce a decent rally towards 52,500. On the lower end, support is placed at 51,000.

Open Interest Analysis: Significant additions were seen in the open interest at the 51,200 PUT and 50,800 PUT, while CALL writers added substantial positions at the 52,200, and 51,300 strikes on the first day of the current expiry. Maximum CALL open interest was seen at the 52,000 strike, whereas maximum PUT open interest was seen at 51,000, indicating a broader range for the market. The open interest positions on both the CALL and PUT sides are relatively similar for July expiry.

Nifty 50

For Nifty 50 the last expiry date was Thursday, July 25. The Nifty 50 has experienced a downward consolidation breakout on the daily chart, suggesting a rise in optimism. A sustained trade above the very short-term moving average, the 21 EMA, has given the index bulls the strength to take the Nifty 50 to new highs amid global market weakness. A fairly large green candle after several insignificant candles clearly signals a big bull trend ahead. The trend might remain positive as long as it stays above 24,500. On the higher end, the index might move towards 25,250.

Open Interest: Analysis: Significant additions were seen in the open interest at the 24,500 CALL and 24,600 PUT, while CALL writers added substantial positions at the 25,100, 25,200 strikes on the first day of the current expiry. Maximum CALL open interest was seen at the 25,000 strike, whereas maximum PUT open interest was seen at 24,500, indicating a broader range for the market. PUT writers remained more active in weekly expiry as compared to CALL writers.

Technical stock recommendations for the week

Buy IDBI Bank at ₹100; Target Price of ₹116; Stop Loss of ₹93

The stock has given a sideways trend breakout or range breakout on the daily chart. The stock is sustaining above its short-term 14-day and 21-day moving averages. RSI is in a bullish crossover on the multi-time frame chart. One can buy the stock in the range of ₹98-100 with a stop-loss at ₹93 and a potential target of ₹116.

Buy Oberoi Realty Ltd at ₹1,782; Target Price of 1,900; Stop Loss of ₹1,669

The stock has moved up after a piercing line pattern formation on the daily chart. Besides, the stock has reclaimed the 21EMA on the daily timeframe. Additionally, the RSI(14) has formed a rounding bottom pattern. Over the short term, the stock might move towards ₹1,900; while a support is placed at ₹1,670.

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