The Indian stock market is expected to rise on Thursday, thanks to positive signals from around the world. The India VIX, which measures how much the market might move, fell by 1.1% to 15.30. This shows that investors feel a bit calmer. When the VIX is above 15, it often means there’s more market chaos.
Data from the stock market suggests a cautious mood among investors. Many are writing call options, indicating some fear. There has been a significant increase in contracts for the 23,300-level call options, which could act as a resistance level. Also, the 23,200 put options are gaining popularity, showing that this level is a strong support point.
Dhupesh Dhameja, an analyst at SAMCO Securities, noted, “The high activity between the 23,200 and 23,300 levels indicates a fight between buyers and sellers. The rise in call options suggests that 23,300 is a tough barrier for prices to go up.”
The Put-Call Ratio (PCR) dropped to 0.72 from 0.79, indicating a steady market attitude. The ‘max pain’ level at 23,300 shows that there may not be much chance for the prices to go down in the immediate future.
“If the prices break past 23,300, we might see a rally towards 23,500. However, if they fall below 23,000, we could see them drop to 22,800. Right now, a good strategy is to buy near support and sell near resistance until something more definite happens,” suggested Dhameja.
For those looking to trade in the short term, here are some stock recommendations from various experts:
From Rajesh Palviya, VP-Technical & Derivative Research, Axis Securities:
– BSE: Buy | Target Rs 6480 | Stop Loss Rs 5550
– Elecon Engineering: Buy | Target Rs 700 | Stop Loss Rs 585
– Navin Fluorine International: Buy | Target Rs 4185 | Stop Loss Rs 3590
– Goldiam International Ltd: Buy | Target Rs 665 | Stop Loss Rs 474
From Nooresh Merani, Independent Technical Analyst:
– Indus Tower: Buy | Target Rs 375 | Stop Loss Rs 340
– Power Grid: Buy | Target Rs 320 | Stop Loss Rs 295
– JM Financial: Buy | Target Rs 135 | Stop Loss Rs 115
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