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Stock market today: The Indian stock market rebounded on Monday, 5 October after the Nifty 50 recorded its longest weekly losing streak in 25 years, with easing crude oil prices and reduced concerns over aggressive US monetary tightening supporting investor sentiment. The Nifty 50 gained 0.60% to 22,555.75, while the Sensex rose 0.66% to 72,382.47.
The benchmark indices had declined for eight consecutive weeks through Friday, weighed down by heavy foreign selling, elevated oil prices and a sharp rise in global bond yields.
Sentiment improved on Monday after softer-than-expected US jobs data reduced expectations of a Federal Reserve rate hike later this month, providing some relief to emerging-market assets. A decline in crude oil prices further supported the recovery.
Chandan Taparia has recommended Nykaa for a buy and LIC 27 October futures for a sell for tomorrow.
For Nykaa, Taparia sees a potential upside towards ₹360, with a stop loss at ₹328, citing a bullish RSI crossover, renewed buying interest and a breakout above the ₹350 zone.
For LIC, he has recommended a sell with a target of ₹366 and a stop-loss at ₹400, citing a weak price structure, selling pressure at higher levels, and a potential breakdown below ₹385.
On the Nifty options front, Chandan Taparia, Head Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services Ltd, said that the maximum call OI is at 22,600 then 22,800 strike while maximum Put OI is at 22,500 then 22,400 strike.
“Call writing is seen at 22,600 then 22,550 strike while Put writing is seen at 22,500 then 22,400 strike. Option data suggests a broader trading range in between 22,100 to 22,900 zones while an immediate range between 22,300 to 22,800 levels,” said Taparia.
Nifty 50 index opened with a gap up but faced rejection at higher levels in the first hour. It managed to take some support near 22,400 zones and witnessed a recovery in the last half of the session amidst volatile swings. It formed a Doji sort of a candle on the daily frame indicating indecisiveness at current levels.
“Now if it crosses and holds above 22,650 zones, bounce could be seen towards 22,750 then 22,850 zones while a hold below the same could see weakness towards 22,400 then 22,300 zones,” said Taparia.
Bank Nifty index opened on a positive note and extended the momentum towards 55,200 zones in the initial tick of the session. However, it failed to hold above higher zones and gradually drifted towards the 54,500 level in the latter part of the session. It formed a small-bodied candle on the daily scale with longer shadows as selling pressure is seen at higher zones, but some buying interest is visible at lower levels.
“Now it has to cross and hold above 54,750 zones for a bounce towards 55,000 then 55,250 levels while a hold below the same could attract weakness towards 54,500 then 54,250 zones,” the MOFSL analyst added.
Chandan Taparia has recommended two stocks to buy or sell tomorrow. Taparia recommends buying FSN E-Commerce Ventures (Nykaa) and Life Insurance Corporation of India (LIC) 27th October Futures shares.
Stock has witnessed a healthy correction and has now negated its sequence of lower highs, bouncing from the strong support zone around 320. The RSI has given a bullish crossover, while notable volumes indicate renewed buying interest. Sustaining above the 350 zone could trigger a fast move on the upside.
Stock is on the verge of an inverse cup and handle breakdown below 385 zone, keeping the overall price structure weak. The stock remains in a downtrend with small bounces consistently facing selling pressure, indicating supply at higher levels. It has formed a bearish candle and is trading below its short-term moving averages further strengthening the bearish setup.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
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