Lagatar24 Desk
New Delhi: The Indian stock market is poised for a higher opening today, January 14, following mixed global cues. Trends in Gift Nifty suggest a gap-up start for the domestic benchmark index. This comes after Monday’s market crash, where the Sensex and Nifty 50 experienced significant losses, closing at 76,330.01 and 23,085.95, respectively.
In the derivatives market, Chandan Taparia, Head of Equity Derivatives and Technicals at Wealth Management, MOFSL, shared his insights on today’s trading outlook. He analyzed the market’s broader trading range and provided specific stock recommendations.
Market Overview
•Nifty 50 Outlook: The index closed around 340 points lower, forming a bearish candle for the seventh consecutive session. Taparia expects the Nifty 50 to remain weak if it stays below 23,200, with potential downside targets of 22,800 and 22,650. Resistance levels are at 23,200 and 23,350.
•Bank Nifty Outlook: Bank Nifty plunged 692.90 points, closing at 48,041.25, and formed a bearish candle. The index is expected to face hurdles at 48,250 and 48,500, with support at 47,500 and 47,250.
Taparia’s Stock Picks
1. Marico (Buy)
•Target Price: ₹705
•Stop Loss: ₹650
•Rationale:
•Marico has broken out of a consolidation zone on the daily chart.
•It shows resilience despite broader market weakness.
•The ADX indicator suggests a strong uptrend, supporting continued gains.
2. Mphasis (Sell)
•Target Price: ₹2,700
•Stop Loss: ₹2,850
•Rationale:
•The stock breached its rising trendline support on the daily chart with increased selling volume.
•The MACD line indicates a bearish momentum.
•Recommendation includes selling Mphasis 30th January Futures for potential downside.
3. Aditya Birla Fashion and Retail (Sell)
•Target Price: ₹245
•Stop Loss: ₹270
•Rationale:
•The stock has broken below key support levels, forming a bearish candle on the daily chart.
•The RSI indicator suggests declining momentum.
•Taparia advises selling Aditya Birla Fashion and Retail 30th January Futures for a target of ₹245.
Technical Observations
•Maximum call open interest (OI) is at 24,000 and 23,500 strike prices.
•Maximum put OI is observed at 22,000 and 23,000 strike prices.
•Broader trading range: 22,500-23,500.
•Immediate range: 22,900-23,300.
Disclaimer: The recommendations reflect the personal views of the analyst and MOFSL. Investors are advised to consult certified financial experts before making investment decisions.
