The Indian market is likely to consolidate on Tuesday, tracking mixed global cues.
Technically, the Nifty50 index closed below its key level of 24,000 on Monday, with the formation of a bearish candle on the daily chart suggesting further weakness if momentum fails to pick up.
India VIX decreased by 6.26%, closing at 11.98. The VIX has remained below 13 for the last five consecutive sessions, providing support to the market by keeping volatility subdued.
The options market reflects growing bearish sentiment, with call writing surpassing put writing for the second consecutive trading session.
Significant open interest is observed at the 26,000 call (1.14 crore contracts) and the 25,000 put (77.97 lakh contracts), signaling resistance at 26,000.
Increased put activity in the 25,600-25,700 range indicates that call writers are pushing prices lower.
“Unwinding of puts alongside the addition of calls highlights the dominance of bearish sentiment,” said Dhupesh Dhameja, Technical Analyst at SAMCO Securities.
“The put-call ratio (PCR) has slightly increased to 0.77 from 0.69, reinforcing a cautious outlook as bears remain in control. Max pain stands at 25,750, marking a critical level for future movements,” he added.
“As long as the index remains below 26,000, selling pressure is expected, with any minor pullbacks likely to be met with selling activity,” Dhameja recommended.
We have collated a list of stocks from the F&O basket, along with cash market suggestions from various experts, for traders with a short-term trading horizon:
Expert: Ajit Mishra, SVP - Technical Research, Religare Broking Ltd, told ETBureau
Bharat Electronics: Buy | Target Rs 315 | Stop Loss Rs 268
Info Edge: Buy | Target Rs 8,200 | Stop Loss Rs 7,480
Bata India: Sell | Target Rs 1,250 | Stop Loss Rs 1,380
Jindal Steel: Sell | Target Rs 860 | Stop Loss Rs 935
Expert: Kunal Bothra, Market Expert, told ETNow
SBI: Buy | Target Rs 844 | Stop Loss Rs 802
NMDC: Buy | Target Rs 234 | Stop Loss Rs 220
Syngene: Buy | Target Rs 888 | Stop Loss Rs 850
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times.)
Technically, the Nifty50 index closed below its key level of 24,000 on Monday, with the formation of a bearish candle on the daily chart suggesting further weakness if momentum fails to pick up.
India VIX decreased by 6.26%, closing at 11.98. The VIX has remained below 13 for the last five consecutive sessions, providing support to the market by keeping volatility subdued.
The options market reflects growing bearish sentiment, with call writing surpassing put writing for the second consecutive trading session.
Significant open interest is observed at the 26,000 call (1.14 crore contracts) and the 25,000 put (77.97 lakh contracts), signaling resistance at 26,000.
Increased put activity in the 25,600-25,700 range indicates that call writers are pushing prices lower.
“Unwinding of puts alongside the addition of calls highlights the dominance of bearish sentiment,” said Dhupesh Dhameja, Technical Analyst at SAMCO Securities.
“The put-call ratio (PCR) has slightly increased to 0.77 from 0.69, reinforcing a cautious outlook as bears remain in control. Max pain stands at 25,750, marking a critical level for future movements,” he added.
“As long as the index remains below 26,000, selling pressure is expected, with any minor pullbacks likely to be met with selling activity,” Dhameja recommended.
We have collated a list of stocks from the F&O basket, along with cash market suggestions from various experts, for traders with a short-term trading horizon:
Expert: Ajit Mishra, SVP - Technical Research, Religare Broking Ltd, told ETBureau
Bharat Electronics: Buy | Target Rs 315 | Stop Loss Rs 268
Info Edge: Buy | Target Rs 8,200 | Stop Loss Rs 7,480
Bata India: Sell | Target Rs 1,250 | Stop Loss Rs 1,380
Jindal Steel: Sell | Target Rs 860 | Stop Loss Rs 935
Expert: Kunal Bothra, Market Expert, told ETNow
SBI: Buy | Target Rs 844 | Stop Loss Rs 802
NMDC: Buy | Target Rs 234 | Stop Loss Rs 220
Syngene: Buy | Target Rs 888 | Stop Loss Rs 850
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times.)
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