Market Overview: The Indian stock market registered a lackluster performance on Thursday, October 10, marking the second consecutive session of subdued trading. Despite optimistic cues from global and Asian markets, heightened selling pressure in the IT and pharmaceutical sectors kept the primary indices hovering near the previous day’s levels.
According to market analysts, the Nifty Index opened positively but struggled to maintain momentum after its initial hour, experiencing limited movement within a narrow 150-point range. As the session progressed, it formed a small bearish candle and an inside bar on the daily chart, which indicates market hesitation. Notably, while the index has maintained higher lows over the last three sessions, underlying selling pressure persists at minor bounces. Analysts suggest that as long as the index stays below the 25,150 mark, further weakness may be observed, potentially leading down to the 24,850 and 24,750 zones. Conversely, resistance levels are identified at 25,150 and 25,350.
On the options front, the maximum Call Open Interest (OI) is concentrated at the 26,000 and 25,000 strike levels, while the maximum Put OI is noted at the 25,000 and 24,000 strikes. The market is witnessing Call writing at the 25,000 and 26,000 strikes, coupled with Put writing at the 25,000 and 24,000 strikes. Overall options data indicate a broader trading range between 24,600 and 25,500, with an immediate range confined between 24,800 and 25,300 levels.
Bank Nifty Outlook
Focusing on the Bank Nifty Index, the outlook remains optimistic. The index kicked off trading on a positive note, showcasing stable buying momentum throughout the day, ultimately testing the 51,600 zone. This upward trend was primarily driven by strong performance from private banking stocks. The Bank Nifty formed a bullish candle on the daily chart and is now nearing its 50-day exponential moving average (DEMA). Currently, the index is trading within the confines of the substantial bearish candle formed on October 7 (with a range of 51,784 to 50,194). Market analysts note that as long as the index holds below the 51,750 mark, weakness may be seen towards the 51,000 and 50,750 levels. On the upside, resistance is anticipated at 51,750 and 52,000 levels.
Stocks to Consider for Investment
Godrej Properties: Buy at ₹3,014 | Target Price: ₹3,160 | Stop Loss: ₹2,950
The stock has surpassed its 50-day exponential moving average (DEMA), signaling a potential bullish trend shift. Increased buying activity across the real estate sector further supports this upward momentum. The Stochastic Indicator’s recent bounce from oversold levels suggests a favorable environment for continued price appreciation.
Maruti Suzuki: Buy at ₹12,944 | Target Price: ₹13,580 | Stop Loss: ₹12,625
Recent price action indicates the formation of an inverted hammer pattern at strategic support levels, accompanied by a bullish reversal supported by high buying volumes. The rising Relative Strength Index (RSI) further confirms positive momentum in the stock.
Hindustan Aeronautics Limited (HAL): Buy at ₹4,482 | Target Price: ₹4,800 | Stop Loss: ₹4,330
A notable Double Bottom pattern has emerged on the daily chart, suggesting a potential trend reversal post-upward breakout. Additionally, the MACD indicator has signaled a bullish crossover, further validating the likelihood of an upward price trajectory.
Disclaimer: The views and recommendations expressed in this analysis are those of individual analysts or brokerage firms and do not reflect the opinions of the publisher. It is strongly recommended that investors consult with certified experts before making any investment decisions, as market conditions can change rapidly, and individual circumstances may vary.
