By Abhishek Mondal Guiness Securities
Indian equity benchmarks Nifty50 and Sensex managed to close in green for two consecutive trading sessions on the back of rally led by banking stocks, ignoring weak global cues. The market took positive cues from the banking sector after the Reserve Bank of India (RBI) allowed banks to spread out the bond losses over the next four quarters.
If Nifty50 manages to hold and sustain above 10,250 marks in the next few trading sessions, it can move higher till the resistance of 10,450 – 10,500 levels (50DMA – 10,507). The immediate support is seen around 10,186 (200DMA) and 10,100 levels.
The Relative Strength Index – RSI on the Daily Chart is at 48.07 which is in a neutral zone with no divergence against the price. The MACD is trading with positive crossover but remains below the zero line, which indicates that the bias could remain neutral to bullish for the next few trading sessions.
On the Options front, maximum Call open interest of 34.91 lakh contracts is seen at strike price 11,000, followed by 10,500, which now holds 33.05 lakh contracts and maximum Put open interest of 44.76 lakh contracts is seen at strike price 10,000, followed by 9800 which now holds 31.18 lakh contracts.
As per the option data, in Nifty immediate support is seen around 10,000 levels whereas 10,500 will act as a hurdle in April expiry.
The India VIX ends down by 1.06 percent at 15.18 and is still trading above the crucial mark of 14 which indicates mild (intraday) volatility to remain in coming trading sessions as we are getting closer to Q4 earnings cycle.
Jamna Auto Industries Ltd: BUY | Target: Rs 98 | Stop loss: Rs 78.50 | Return: 14.15%
The stock has given a consolidation breakout above Rs 80 level on the daily scale with higher volumes. The Daily Relative Strength Index (RSI) is showing an upward trend and the MACD is trading with a positive crossover above the zero line, which indicates that the stock has potential to move higher from current level.
Positional traders can buy the stock at current level and add on dips around Rs 81-83 with a stop loss below Rs 78.50 (closing) for a target of Rs 98.
Disclaimer: The author is Research Analyst, Guiness Securities. The views and investment tips expressed by investment experts on moneycontrol.com are his own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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