Shares to buy or sell: The Indian domestic stock market indices closed flat on Monday, November 11, as the movement in IT and Banking stocks was balanced by losses in index heavyweights. The Nifty 50 index closed 0.03 per cent lower at 24,141.30 points after Monday’s session, compared to 24,148.20 points at the previous market close.
The BSE Sensex index closed 0.01 per cent higher at 79,496.15 points, compared to 79,486.32 points at the previous market close.
“Nifty Index opened negative but bulls took over in the initial couple of hours which was followed by wiping off its intraday gains. It dropped to 24000 levels and has been making lower lows from the last three sessions. It slightly recovered in the last hour and managed to close near 24,150 zones. It formed an outside Bar and a Doji sort of candle on daily frame indicating indecisiveness and tug of war between the bulls and bears. Now till it holds below 24,150 zones, some weakness could be seen towards 24,000 then 23,850 zones while hurdles are placed at 24,350 and 24,500 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Wealth Management, MOFSL.
On option front, Maximum Call OI is at 25,000 then 24,500 strike while Maximum Put OI is at 23,000 then 23,500 strike. Call writing is seen at 24,300 then 24,500 strike while Put writing is seen at 24,000 then 23,600 strike. Option data suggests a broader trading range in between 23,700 to 24,600 zones while an immediate range between 23,900 to 24,400 levels.
Bank Nifty
On the Bank Nifty outlook, Taparia further added, “Bank Nifty Index opened on a negative note and drifted lower towards 51300 zones in the initial hour of the session. However quick recovery was seen from lower levels as it headed towards 52177 marks but remained consolidative near 52000 zones in the latter part of the day. It formed a bullish candle on daily scale and negated its lower highs formation of the last three sessions. Now it has to hold above 51750 zones for a bounce towards 52222 then 52555 levels while a hold below the same could see some weakness toward 51500 then 51250 zones.”
Chandan Taparia has recommended three stocks to buy today. These stocks are Infosys Ltd, Bank of Baroda Ltd, and Power Finance Corporation Ltd.
Stocks to buy today
1. Infosys Ltd. (INFY): Buy at ₹1,860 | Target Price: ₹1,950 | Stop Loss: ₹1,810.
Price has bounced back up from its major support levels and forming higher lows from past four trading sessions. Buying is visible across Nifty IT space which may support the ongoing up move. The MACD Indicator is giving a bullish crossover which suggests upward momentum.
2. Bank of Baroda Ltd. (BANKBARODA): Buy at ₹258 | Target Price: ₹275 | Stop Loss: ₹250.
Price is retesting its breakout from a consolidation zone with a large lower wick suggesting buyers are holding levels. The RSI indicator is rising which confirms the up move.
3. Power Finance Corporation Ltd. (PFC): Buy at ₹481 | Target Price: ₹510 | Stop Loss: ₹465.
Price has broken out from a symmetrical triangle with a surge in volumes. The On Balance volume indicator has turned up suggesting accumulation at current levels.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
