The Indian stock market is likely to open on a steady note on Thursday, tracking mixed global cues, lower crude oil prices and gains in US equities. Asian markets also traded mostly higher.
In the previous session, the Nifty 50 closed above 25,200, despite witnessing some profit booking at higher levels.
According to Jay Thakkar, Vice President and Head of Derivatives and Quant Research at ICICI Securities, the Put-Call Ratio (PCR) has declined to 0.77, indicating the possibility of near-term profit booking. Aggressive call writing at 25,400 and 25,500 has emerged as a resistance for the index.
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On the downside, 25,000 is the immediate support, followed by 24,800. Thakkar sees the Nifty trading in a range of 24,800-25,500 in the short term.
For Bank Nifty, the PCR remains above 1 at 1.18, indicating a positive trend. However, 60,500 is a crucial support level, and a break below it could trigger profit booking.
Despite elevated India VIX levels, Thakkar maintains a bullish short-to-medium-term outlook, supported by strong FII buying and short covering. He recommends a buy-on-dips strategy as long as the Nifty holds above 24,800. A sustained move above 25,500 could take the index towards 26,000.
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Stocks To Buy Today
Jay Thakkar has recommended three stocks to buy today. He suggests buying APL Apollo Tubes, UPL and Godrej Consumer Products stock futures for short-term trading. Here are the trading strategies:
1. APL Apollo Tubes | Buy
> Entry Price: Rs 2,180-2,190
> Targets: Rs 2,340 and Rs 2,400
> Stop Loss: Below Rs 2,120
APL Apollo Tubes share price has been consolidating in the Rs 2,120-2,240 range over the past few sessions. Recent short covering indicates the possibility of an upside breakout. Options data show significant activity at the Rs 2,200 strike, with a move above this level likely to trigger further short covering, Thakkar said.
2. UPL | Buy
> Entry Price: Rs 550-555
> Targets: Rs 575-585
> Stop Loss: Below Rs 530
UPL stock price has been consolidating in the Rs 500-540 range, while recent short covering in the sector could support further gains. The stock has closed above its max pain level of Rs 530, indicating improving momentum. However, call positions at Rs 550-565 could act as resistance.
3. Godrej Consumer Products | Buy
> Entry Price: Rs 870-880
> Targets: Rs 930-950
> Stop Loss: Below Rs 840
Godrej Consumer Products has formed a short-term base after underperforming during the recent market correction and subsequent recovery. Options data indicate strong call positions at Rs 900, and a move above this level could trigger short covering. The max pain level of Rs 850 is expected to act as immediate support, said Thakkar.
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Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
