The Indian stock market is poised for a subdued commencement on Friday, with investor sentiment reflecting a cautious stance influenced by mixed global cues. The trends observed on Gift Nifty indicate a tepid start for the benchmark indices, Nifty 50 and Sensex, as market participants navigate through uncertain economic landscapes.
Previous Session Recap
In the preceding trading session, the domestic equity markets concluded on a positive note, effectively halting a three-session losing streak. This upward movement was largely attributed to signs of easing geopolitical tensions on the global front, which provided a temporary relief to investors.
On Thursday, the Sensex demonstrated resilience by climbing 397.74 points, equivalent to a gain of 0.49%, to settle at 82,307.37. Simultaneously, the Nifty 50 index advanced by 132.40 points, or 0.53%, closing at 25,289.90. This recovery highlights the market's ability to rebound amidst fluctuating conditions.
Nifty 50 Options Analysis
Chandan Taparia, Head of Derivatives and Technicals at Motilal Oswal Financial Services, offers insights into the Nifty 50 options landscape. According to Taparia, the maximum Call Open Interest (OI) is concentrated at the 25,500 strike, followed by the 25,400 strike. Conversely, the maximum Put OI is observed at the 25,000 strike, with the 25,200 strike as the subsequent level.
Call writing activity is notably present at the 25,400 and 25,600 strikes, while Put writing is evident at the 25,300 and 25,200 strikes. The option data suggests a broader trading range spanning from 24,800 to 25,800 zones, with an immediate range anticipated between 25,100 and 25,500 levels.
Nifty 50 Technical Outlook
The Nifty 50 index formed a doji-like candlestick pattern on the daily chart, closing with gains of approximately 130 points. This formation disrupted the lower highs and lower lows pattern that had persisted over the previous three sessions.
Taparia emphasizes that for the Nifty 50 to sustain a bounce, it must hold above the 25,200 zones. A successful hold could propel the index towards 25,450 and subsequently 25,600 zones. Support levels are identified at 25,150 and 25,000 zones, which will be critical in determining the index's near-term trajectory.
Bank Nifty Technical Outlook
The Bank Nifty index concluded Thursday's session with a gain of 399.80 points, or 0.68%, closing at 59,200.10. The index exhibited a Doji pattern on the daily scale, characterized by long upper and lower shadows, indicating buying interest at lower levels while facing multiple hurdles at higher zones.
Taparia notes that for Bank Nifty to initiate a bounce, it needs to cross and hold above the 59,250 zones. Achieving this could lead to a move towards 59,500 and then 59,750 levels. However, failure to maintain this level might result in weakness, potentially driving the index towards 59,000 and 58,750 zones.
Stock Recommendations for Today
Chandan Taparia has identified three stocks for potential investment on January 23, 2026, based on technical analysis. These recommendations are tailored for investors seeking opportunities in the current market environment.
Ashok Leyland
Recommendation: Buy
Target Price: ₹204 per share
Stop Loss: ₹183
Ashok Leyland's share price has formed a bullish "Pole & Flag" pattern on the daily chart, signaling a continuation of the uptrend. The stock is respecting its 20-day exponential moving average (DEMA), with minor dips being actively purchased. The rising ADX line further confirms the strength of the uptrend, as highlighted by Taparia.
Bharat Electronics (BEL)
Recommendation: Buy
Target Price: ₹447 per share
Stop Loss: ₹402
BEL's share price has rebounded from its 100 DEMA support zones after forming a "Hammer" candlestick pattern. The Relative Strength Index (RSI) indicator is on the verge of a positive crossover, which is expected to confirm the upward momentum. Taparia maintains a 'Buy' rating on the stock, anticipating further gains.
APL Apollo Tubes
Recommendation: Buy
Target Price: ₹2,110 per share
Stop Loss: ₹1,925
APL Apollo Tubes has achieved a range breakout at its all-time high zones, accompanied by a strong-bodied bullish candle. The Moving Average Convergence Divergence (MACD) indicator is rising, reinforcing the upward momentum. Taparia advises purchasing the shares with a defined target and stop loss to manage risk effectively.
Disclaimer: The views and recommendations presented above are those of individual analysts or broking firms and do not reflect the stance of Mint. Investors are encouraged to consult with certified experts before making any investment decisions to ensure alignment with their financial goals and risk tolerance.
