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Trade Setup | Things To Know Before Market Opening - 10 Jan 2024 Wednesday



Stock market today: Equity benchmarks the Sensex and the Nifty 50 ended flat on Tuesday, amid mixed global cues. The Sensex closed at 71,386.21, up 31 points, or 0.04 per cent while the Nifty 50 settled at 21,544.85, up 32 points, or 0.15 per cent. The BSE Midcap index ended with a slim gain of 0.07 per cent. However, the Smallcap index hit its fresh all-time high of 44,110.68 during the session, before ending with a gain of 0.37 per cent.

“Nifty opened on a strong note on the back of positive global cues, surpassing 21700 on an intraday basis. However, it witnessed profit booking towards the end of the day which wiped off the day's gains with Nifty closing with marginal gains of 32 points at 21545 levels," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal.

On the outlook for Nifty50 today, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said, "Selling pressure is evident within the 21700-21750 zone, and 21500 stands out as a crucial support level for Nifty. Any significant directional movement for Nifty hinges on two possibilities: achieving a closing above 21750 to reclaim bullish momentum, or experiencing a close below 21500, which could prompt additional selling pressure and potentially pull the Nifty index toward the 21200 mark."

On the outlook for Bank Nifty today, Shah further said, "The Bank Nifty index witnessed continued dominance by bears as selling pressure intensified from higher levels. The index is currently facing a strong hurdle at the 48000 mark, where a significant buildup in open interest is observed on the call side. The immediate support for the index is positioned at the 47000-46900 levels. A breach below this support zone is likely to trigger aggressive selling pressure, potentially leading to further downside momentum."

"Positive sentiments in the Indian IT sector fuelled by a US tech rally and demand on emerging technologies, overshadowed the anticipated muted Q3 results of the sector. Auto and realty continued to remain favourites on account of strong demand. Market optimism about the potential softening of US inflation is driving expectations of near-term rate cuts, bolstering overall sentiment. But in-between profit booking is emerging due to mixed cues from Asian markets as well high valuation concerns," said Vinod Nair, Head of Research, Geojit Financial Services.

In the cash market, FIIs bought shares worth 10.03 crore whereas DIIs bought shares worth 10.47 crore. In the F&O index future segment, FIIs remained net sellers. FIIs sold out shares worth 11,026.16 crore while DIIs sold out shares worth 10,367.79 crore.

On Nifty Call Put Option Data, Chinmay Barve, Head of Technical and Derivative Research at Profitmart Securities said, “Major total Call open interest was seen at 21700 and 21800 strikes with total open interest of 208337 and 170916 contracts respectively. Major Call open interest addition was seen at 21800 strike which added 31918 contracts in open interest," adding, “Major total Put open interest was seen at 21500 and 21400 strikes with total open interest of 114765 and 100023 contracts respectively. Major Put open interest addition was seen at 21400 strike which added 28176 contracts in open interest."

On Bank Nifty Call Put Option Data, Chinmay Barve of Profitmart Securities said, “major total Call open interest was seen at 47500 and 48000 strikes with total open interest of 231361 and 362927 contracts respectively in open interest. Major Call open interest addition was seen at 47300 strike which added 137805 contracts in open interest," adding, “Major total Put open interest was seen at 47000 and 46500 strikes with total open interest of 191943 and 165634 contracts respectively. Strike price of 47500 saw open interest reduction of 56706 contracts."

On intraday stocks for today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi and Kunal Kamble, Senior Technical Analyst at Bonanza Portfolio — recommended six stocks to buy today.

SunPharma has recently experienced a significant breakthrough above the crucial resistance zone ranging from 1300 to 1310 on the daily chart. This breakout has been accompanied by a consolidation of the upward movement, characterized by higher highs and higher lows. The strong bullish sentiment is further validated by a noticeable surge in trading volume.

Key technical indicators, particularly the Relative Strength Index (RSI), highlight the positive momentum in the stock. The RSI not only indicates favourable trends but also aligns with the stock trading above important moving averages, including the 20-day, 50-day, and 100-day Exponential Moving Averages (EMA). This convergence underscores the continued strength in SunPharma price action.

In summary, the decisive breakout, along with encouraging volume and the positive alignment of key technical indicators, suggests a bullish outlook for SunPharma. Traders and investors may interpret this analysis as indicative of potential sustained upward momentum in the stock.

Considering the above analysis, we recommend SunPharma in cash at the current market price (CMP) of 1324, setting a target of 1361, and implementing a stop loss at 1306.

APOLLOHOSP is currently exhibiting a bullish stance, with its stock price standing at 5797.65 levels. The recent formation of a robust green candle on the daily chart is indicative of a positive trend. Reinforcing this bullish outlook, the stock enjoys substantial support around 5645 levels, closely aligned with its 20 Day Exponential Moving Average (EMA).

Notably, APOLLOHOSP is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, underscoring its prevailing strength. The momentum indicator, Relative Strength Index (RSI), has demonstrated a rebound from lower levels, currently positioned at 63, further affirming the stock's underlying strength.

This technical setup suggests a favourable environment for potential buyers, with the stock poised for upward momentum. Investors may find opportunities to capitalize on the positive trend, considering the current support levels and the rebound in RSI. The overall chart pattern and indicators present a constructive outlook for APOLLOHOSP in the near term.

Based on the above analysis we recommend buying APOLLOHOSP at CMP of 5797.65 with a stop loss of 5645 for the target of 6025.

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 1875 so, holding the support level of 1800 this stock can bounce toward the 1875 level in the short term, so the trader can go long with a stop loss of 1800 for the target price of 1875.

4. State Bank of India: Buy at 626, target 640, stop loss 616

On the short-term chart, The stock has shown a bullish reversal pattern, so holding the support level of 616. this stock can bounce toward the 640 level in the short term, so the trader can go long with a stop loss of 616 for the target price of 640.

Abbot India on a Daily time frame has formed Descending Triangle and has closed above the falling trend line which is indicating a breakout on the upside. The steadily rise in volume is indicating buyers are keen to buy the security. Price are trading above the Fast (50) EMA and Slow (200) EMA which indicates uptrend in the security. The momentum indicator RSI is trading in higher zone indicating that the security is trading in upward direction. On the Directional front DI+ is trading above DI- which indicates uptrend whereas ADX trading above DI- indicates strength in the move.

6. Nykaa: Buy at 185.50-187.50, target 214, stop loss 171

Nykaa has given a breakout of Flag and Pole Pattern on a daily time frame indicating bullish continuation in the security. The volume higher than average indicating buyers are interested in the security. Price trading above major EMA's indicates bullishness as well as golden crossover is supporting. RSI is trading at higher range indicating uptrend in the security. On the Directional front DI+ is trading above DI- which indicates uptrend whereas ADX trading above DI- indicates strength in the move.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of PickStock. We advise investors to check with certified experts before making any investment decision.