The Nifty 50 and Sensex, the country’s major indices, are expected to open higher on Wednesday after a severe selloff in the previous session that caused them to fall to their lowest levels in more than three months. This fall was caused by a number of factors, including persistent foreign outflows, conflicting profit reports, geopolitical concerns, and problems with international trade.
Gift Nifty futures were trading at 25,265.5 points as of 8:01 IST, indicating that the Nifty 50 may start the session somewhat above Tuesday’s closing number of 25,232.50.
The Nifty 50 and Sensex saw drops of roughly 1.4% and 1.3%, respectively, on Tuesday. This was their biggest percentage loss in a single day in more than eight months, and it led to their lowest closing levels in more than three months.
ICICI Securities Vice President and Head of Derivatives and Quantitative Research Jay Thakkar’s Market Outlook
Nifty 50
The Nifty 50 has broken the previous swing low of 25,473 levels, confirming the following leg down that would take the Index below the next lower-side support level of 25,000. Currently, 25,500 and 25,700 will serve as crucial barrier on the upward, and the short-term trend will be downward until these levels are removed. With Nifty Midcap, the larger markets have also experienced a significant correction. The next aim is the 13,000 and 12,800 levels below the crucial 13,500 support.
The BankNifty below 59,500 has no significant support until 58,500, while Nifty Financial Services has fallen from its critical support levels of 27,300 and below this the target on the lower side of 26,800. Since the market is generally trending downward, a bounce should be used as a selling opportunity.A bounce from 25,000 cannot be ruled out because, according to the options data, 25,500 strike has the biggest call base and 25,000 strike has the highest put base. However, if 25,000 also breaks, 24,700 levels will be the next critical support. Since the maximum pain is also at 25500 levels, there won’t be any signs of a trend reversal going forward unless the 25,500 level is removed.
Short-Term Stock Purchases: Jay Thakkar
Hindustan Zinc Ltd Futures, Fortis Healthcare Ltd Futures, and Info Edge (India) Ltd (Naukri) Futures are suggested by Jay Thakkar of ICICI Securities.
Sell Naukri (Info Edge) Futures in the range of ₹1,310-1,290; stop loss at ₹1,340; Targets ₹1,230 and ₹1,200
With an increase in open interest, Naukri has broken the lower end of the range, suggesting that some short adds are currently occurring in the stock. The stock consolidated in a narrow range following the last decline due to long unwinding, and it has now finally breached the range on the lower side. As a result, the risk-reward ratio is pretty ideal at the current levels.
The PCR is 0.54, which is bearish since there have been more aggressive call additions from ₹1,300 to ₹1,400 strikes than puts on the lower. The short-term trend for this stock is now fairly bearish unless the ₹1,340 levels are taken off on a closing basis.
Purchase Hind Zinc Futures between ₹675 and 680; stop losing around ₹648; aim for ₹710–725.
Long-built hind zinc has been generating higher tops and bottoms with rising volumes and open interest. Since the ₹700 strike has the greatest call base, there isn’t a significant obstacle until the ₹700 levels. On the other hand, the ₹660–640 strikes have a good put base, signaling strong support on the lower side. The short- to medium-term prognosis for this stock is strong due to the silver bull run.
Sell Fortis Futures between ₹865 and 870; target ₹850–840; stop loss at ₹890.
After recovering and retracing 38.2% of its prior decline, Fortis broke its critical support on the lower side. The stock also broke the uptrend line support at the 900 strike, which is the short-term resistance, while the ₹850 and ₹840 strikes saw put additions, which will serve as a short-term support. Selling on rise for the conservative targets of ₹850 and ₹840 is the plan.
