By Indian stock market: The Indian stock market extended its record-breaking streak, accompanied by investors continuing their strategy of profit-taking at elevated levels. On Thursday, the Nifty 50 began trading at 24,369.95, slightly up from its previous close of 24,286.50, and recorded a gain of approximately half a percent, reaching a new peak of 24,401. By the end of the session, the index closed marginally higher by 16 points, or 0.06 percent, at 24,302.15. Meanwhile, the Sensex climbed 0.50 percent, achieving a new all-time high of 80,392.64 during the day. However, it relinquished most of its gains and settled with a modest increase of 63 points, or 0.08 percent, closing at 80,049.67.
“Nifty index opened positive at a new high and touched 24401 marks in the initial tick. It witnessed some profit booking thereafter and sank towards the end but held on to its support of 23280. It formed a small bodies Bearish candle on daily frame but has been making higher lows from the last eight sessions. Now it has to hold above 24250 zones to extend the move towards 24400 and 24500 zones whereas supports are placed at 24200 then 24050 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL.
India VIX was down by 2.90% from 13.20 to 12.82 levels. Lower volatility is comforting the bulls to drive the index at higher zones.
On option front, Maximum Call OI is at 24500 then 24400 strike while Maximum Put OI is at 24000 then 24200 strike. Call writing is seen at 24500 then 24400 strike while Put writing is seen at 24000 then 24200 strike. Option data suggests a broader trading range in between 24000 to 24500 zones while an immediate range between 24200 to 24400 levels.
Bank Nifty
On the Bank Nifty outlook, Taparia added, “Bank Nifty Index opened on a positive note and made a new life time high of 53357 marks in the initial tick of the session. However it remained consolidative in a narrow range of 300 points in between 52900 to 53100 zones in the latter part of the day and ended on a flattish note near 53100 levels. It formed a small bodied candle on daily scale as buying is visible at lower zones but momentum is missing at higher levels. Now it has to continue to hold above 52750 zones for an up move towards 53357 then 53750 levels while on the downside support is seen at 52750 then 52500 zones.”
Chandan Taparia has recommended three stocks to buy today, July 5. According to him, these stocks – Zydus Lifesciences, HCL Technologies and Cummins India – are technically placed to see a decent upmove.
Stocks to buy
Zydus Lifescience: Buy at ₹1137 | Target Price: ₹1200 | Stop Loss: ₹1105
Zydus Lifesciences is in overall uptrend and holding gains at higher zones. It is perfectly respecting 50 DEMA and supports are gradually shifting higher. It has given consolidation breakout of past six weeks and buying is visible across Pharma stocks which may support the ongoing up move.
HCL Tech: Buy at ₹1522 | Target Price: ₹1600 | Stop Loss: ₹1480
HCL Technologies has given range breakout on daily chart and managed to close above the same. It has formed a strong bullish candle on daily scale and follow up buying is visible across IT stocks which may take prices higher.
Cummins India: Buy at ₹4064 | Target Price: ₹4300 | Stop Loss: ₹3950
Cummins is in continuous uptrend and forming higher highs from past four weeks. It has given an inside bar breakout on daily chart which has bullish implications. Mechanical indicator RSI has given bullish cross over.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
