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Indian equity benchmarks ended largely flat on Tuesday, 27 October as elevated crude oil prices kept investor sentiment cautious, with market participants awaiting the US Federal Reserve’s policy decision later this week.
The Nifty 50 declined 0.02% to close at 22,749.75, while the Sensex slipped 0.01% to settle at 73,598.67.
Brent crude traded near $116 per barrel, hovering at six-month highs, as attacks on Saudi Arabia dampened hopes of an immediate easing of tensions in the Middle East.
Amid the range-bound market, Jay Thakkar of ICICI Securities recommends buying CDSL futures at ₹1,210– ₹1,230, with targets of ₹1,300– ₹1,350 and a stop-loss below ₹1,150.
For Zydus Lifesciences futures, he suggests an entry range of ₹1,170– ₹1,180, with targets of ₹1,250– ₹1,300 and a stop-loss below ₹1,130. He also recommends buying Sun Pharmaceutical Industries futures at ₹1,760– ₹1,770, with targets of ₹1,840– ₹1,880 and a stop-loss below ₹1,730.
Jay Thakkar, Vice President and Head of Derivatives and Quantitative Research at ICICI Securities, said the Nifty 50 closed almost flat on monthly expiry day after facing selling pressure at higher levels. The index attempted to move above 22,800 towards 23,000 but failed to sustain the gains. It also briefly slipped below 22,700, reflecting intraday volatility. However, India VIX declined nearly 5%, indicating that volatility remained relatively contained.
Thakkar said the market has been trading in a range ahead of key global and domestic events, including the Federal Reserve’s policy decision, GDP data and geopolitical developments. He noted that the Nifty 50’s immediate trading range is 22,000–23,000, with a decisive breakout on either side likely to determine the next directional move. Until then, the index is expected to remain range-bound, with India VIX likely to trade between 15 and 20.
On the Bank Nifty, Thakkar said the index has underperformed the Nifty 50 in recent sessions. He identified 53,000 as a crucial support and 56,000 as a key resistance, putting the index in a trading range of 53,000–56,000. A breakout beyond either level could signal the next move. Within the banking space, he expects private sector banks to outperform public sector banks.
Jay Thakkar of ICICI Securities recommends Central Depository Services Ltd (CDSL) Futures, Zydus Lifesciences Futures, and Sun Pharmaceutical Industries Futures.
CDSL has been trading within a range since almost 2 years now and the range is getting narrower and the stock has recently reversed from the lower end of the range. The stock has witnessed short positions recently and it has turned oversold as well and a short covering from hereon cannot be ruled out, hence the risk: reward is absolutely favourable for the bulls. As per the options data, 1,200 strike has the highest put base whereas 1,300 strike has the highest call base, so above 1,200 levels the 1,300 levels are likely to be tested.
Zyduslife has been consolidating in the range of ₹1,100-1,250 since some time now and overall, the stock has witnessed long built up as the price has been inching higher since the Nifty Pharma has reversed from down to up. As per the options data, 1,200 strike has the highest call base so once that will be taken off the stock will witness further up move. The stock has also witnessed some good put additions at the lower levels from 1,100-1,140 strikes which will act as a short-term support.
Sunpharma has fallen quite a lot, and recently the stock has formed a nice base in the range of ₹1,700-1,750. From here on, some short covering is anticipated in the stock, as the Nifty Pharma Index has reversed well from the lower levels. As per the options data, the 1,700 strike has the highest put base and will act as short-term support, whereas 1,840 has the highest call base; hence, that is the 1st Target.
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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