The S&P BSE Sensex fell more than 300 points while the Nifty50 closed below 21,700 levels on Tuesday. The Nifty future closed negative with losses of 0.62% at 21,754 levels.
India VIX was down by 0.68% from 14.68 to 14.58 levels in the previous trading session. Volatility was slightly down and has been cooling off from the last four sessions.
Positive setup was seen in stocks like Aditya Birla Fashion & Retail, Lupin, Glenmark, Biocon, Gujarat Gas, NMDC, AB Capital, Divi’s Labs, Adani Ports, Coal India, Sun Pharma, Metropolis, Cipla, Granules, Dr Reddy’s, Concor, Zydus Life, Tata Consumer, Voltas, and RIL etc. among others.
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On the weekly options front, the maximum Call OI is placed at 21,800 and then towards 22,000 strikes while the maximum Put OI is placed at 21,500 and then towards 21,600 strikes.
Call writing is seen at 21,700 and then towards 21,800 strikes while some Put writing is seen at 21,500 and then towards 21,600 strikes.“Options data suggests a broader trading range in between 21,300 to 22,500 zones while an immediate trading range in between 21,500 to 22,000 zones,” Chandan Taparia, Senior Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.
“The Nifty index has formed a Bearish candle on the daily scale on Tuesday with longer lower shadows and broke its higher lows formation of the last six sessions,” he said.
“Now the index has to hold above 21650 zones, for an up move towards 21850 then 22000 zones whereas supports are placed at 21500 then 21350 zones,” recommended Taparia.
We have collated a list of stocks from the F&O basket along with cash market from various experts for traders who have a short-term trading horizon:
Expert: Jay Thakkar, Head Alternate Research, Sharekhan by BNP Paribas told ETBureau
Dr Reddy’s Laboratories: Buy| Target Rs 6200| Stop Loss Rs 5700
Divi’s Laboratories: Buy| Target Rs 4400| Stop Loss Rs 3845
Pidilite Industries: Buy| Target Rs 2900| Stop Loss Rs 2560
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
