Indian equity benchmarks concluded Thursday's trading session with minimal movement, reflecting a cautious market mood in the absence of fresh positive triggers. Persistent concerns over the weakening rupee, continued selling by foreign institutional investors, and ambiguity around a potential India-US trade pact collectively kept investor sentiment subdued.
Market Performance and Key Levels
The benchmark 30-share Sensex slipped 78 points, or 0.09%, to close at 84,481.81. The broader Nifty 50 edged lower by a mere 3 points, or 0.01%, settling at 25,815.55. The market breadth showed a mixed trend with the BSE Midcap index posting marginal gains of 0.05%, while the Smallcap index declined by 0.28%.
Chandan Taparia, Head of Derivatives and Technicals at Motilal Oswal Financial Services, provided insights into the options data. He noted that the maximum Call open interest is at the 26000 strike, followed by 25900. On the Put side, the maximum OI is at 25800, then 25700. The data indicates Call writing at 25800 and 25900 strikes, while Put writing was observed at 25700 and 25800 strikes.
"Option data suggests a broader trading range between 25300 and 26200 zones, while an immediate range is between 25600 and 26000 levels," Taparia stated.
Nifty 50 and Bank Nifty Technical Outlook
According to Taparia, the Nifty index opened negative but attempted a recovery to cross the 25900 zone, failing to sustain at higher levels. It lost strength in the second half, dropping to the 25700 mark. The index has been witnessing a tug-of-war between bulls and bears, forming a small-bodied bullish candle with a long upper shadow on the daily chart.
"It is continuously making lower highs and lower lows for the last four sessions," he said. "Now, till it holds below 25900 zones, weakness could be seen towards 25700 then 25600 zones. Hurdles have shifted lower to 25900 then 26000 zones."
The Bank Nifty opened flat but faced intense selling pressure from the outset, with every intraday bounce met with fresh selling. The index closed with a loss of approximately 540 points, forming a bearish candle on the daily chart. It found support near its 20-day exponential moving average in the final hour. "Now till it holds below 59500, some weakness could be seen towards 59000, then 58750, while upside hurdles are at 59500, then 59750 zones," Taparia added.
Expert Stock Recommendations for 19 December
Chandan Taparia has recommended three trading ideas for Friday's session:
Tech Mahindra (Buy): The analyst suggests a buy with a target price of ₹1700 and a stop loss of ₹1560. The stock has formed a bullish "Pennant" pattern on the daily chart, signaling a continuation of the uptrend. The rising ADX line confirms the trend's strength.
Hindalco Industries (Buy): A buy recommendation is given with a target of ₹905 and a stop loss of ₹830. The stock has witnessed a range breakout near its all-time high zones with higher-than-average traded volumes. The positively placed RSI indicator adds to the bullish outlook.
Mazagon Dock Shipbuilders (Sell): The analyst recommends selling this stock with a target price of ₹2200 and a stop loss of ₹2435. The stock is in an overall downtrend and has breached below its major support zones. The declining MACD line confirms the prevailing bearish momentum.
