Nifty may move towards 22,900, says MOFSL; shares 3 stock ideas
Nifty has to hold above the 22,700 zones for an upside move towards 22,900, then 23,000 zones, while support can be seen at 22,600.
Disclaimer: This article is written by Chandan Taparia, head, derivatives & technicals, wealth management, Motilal Oswal Financial Services. Views expressed are his own. Readers' discretion is advised.
Nifty index opened positive and remained in a sideways to positive trend throughout the session and moved up by more than 200 points. The index closed near its upper band and has started to make higher highs – higher lows from the last two sessions. It formed a bullish candle on the daily frame, indicating support-based buying at lower levels.
Now it has to hold above the 22,700 zones for an upside move towards 22,900, then 23,000 zones, while support can be seen at 22,600 then 22,500 zones. On option front, Maximum Call OI is at 23,500 then 22,700 strike, while Maximum Put OI is at 22000 then 22600 strike. Call writing is seen at 23500 then 22700 strike, while Put writing is seen at 22600 then 22700 strike.
Option data suggests a broader trading range in between 22300 to 23300 zones, while an immediate range is between 22500 to 23000 levels. Bank Nifty index opened on a positive note and gradually extended the momentum towards 55,200 zones in the first half of the session. However, it remained consolidative in a narrow range of 200 points in the latter part of the session.
It formed a small bullish candle on the daily scale as buying interest is visible at lower levels, but momentum is still missing at higher zones. Now it has to hold above the 55,000 zone for a bounce towards 55,500, then 55,750 levels, while on the downside support is seen at 54,750, then 54,500 zones. Buy DIVIS LAB CMP ₹9,550 SL ₹9,260 TGT ₹10,100 Stock witnessed a healthy correction after a sharp up move and is now witnessing a bounce from the support zone, indicating renewed buying interest.
It has given a fresh inside-bar breakout and formed a strong bullish candle reflecting improving momentum. The RSI has also given a bullish crossover, further supporting the positive setup and potential for further upside. Buy MCX CMP ₹3,310 SL ₹3,200 TGT ₹3,520 Stock has negated its sequence of lower lows and has formed a strong bullish Marubozu candle, indicating improving buying momentum.
It continues to respect its 50 DEMA and is witnessing a sharp bounce from the same, highlighting strong support at lower levels. Sustaining above the 3350 zone could trigger a sharp up move towards the previous swing high near 3500. Buy SONACOM CMP ₹820 SL ₹795 TGT ₹865 Stock is in an overall uptrend and continues to respect its 50 DEMA, indicating sustained buying interest on dips.
It is now on the verge of an ATH breakout above the 840 zone. Sustaining above this level could trigger a fresh up move towards new life highs. RSI is also inching higher
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