The bulls successfully defended the 19,600 level throughout the day, supported by strong open interest (OI) at the 19,600 strike price from put writers. The strength is expected to continue as long as the index remains above 19,600. A decisive drop below this level might trigger significant long unwinding, but until then, a strategy of buying on dips is advisable. Resistance is observed at 19,850, and a breakthrough above this level could propel the index towards 20,000.
The NIFTY 50 is a significant benchmark in the Indian stock market, representing the weighted average of the 50 largest companies listed on the National Stock Exchange (NSE). Ownership and management of the Nifty 50 lie with NSE Indices, previously known as India Index Services & Products Limited, functioning as a wholly-owned subsidiary of the NSE Strategic Investment Corporation Limited. In the past, NSE Indices collaborated with Standard & Poor’s under a marketing and licensing agreement for co-branding equity indices, a partnership that concluded in 2013. Launched on April 22, 1996, the Nifty 50 index is one among several stock indices provided by Nifty.
In the Bank Nifty index, the ongoing struggle between bulls and bears persisted. Resistance is set at 44,700, with support at 44,000. The overall market sentiment stays bullish as long as critical support at 44,000 is maintained. A breach below this level, confirmed by a closing basis, could lead to renewed selling pressure. On the upside, a notable resistance level is positioned at 45,000, and crossing this point might trigger significant short-covering.
Stock Recommendations:
- Jamna Auto
- Recommendation: Buy
- CMP: ₹120
- Target: ₹128
- Stop Loss: ₹117
The share price of Jamna Auto has broken out from a downward consolidation on the daily chart, maintaining a position above the critical moving average. The RSI indicates a bullish crossover, suggesting the stock may move towards ₹128 in the short term, with support at ₹117.
- Tata Motors
- Recommendation: Buy
- CMP: ₹660
- Target: ₹700-720
- Stop Loss: ₹630
Tata Motors’ share price has experienced a breakout from a sideways consolidation pattern, accompanied by a substantial increase in volumes. Support at the 20DMA has led to a strong rebound, with the RSI crossing the level of 60, reinforcing the buy signal.
- RITES
- Recommendation: Buy
- CMP: ₹495
- Target: ₹540-550
- Stop Loss: ₹470
RITES’ share price has shown a sharp reversal on the daily chart, supported by a significant increase in volumes, indicating bullish activity at support levels. The RSI’s positive crossover on the daily chart confirms a buy signal, with key support at ₹470. Upside potential targets are ₹540 and ₹555.