The Indian stock market is expected to start lower with the Gift Nifty at 23,416, down 196 points from the previous close of 23,612. According to reports from LiveMint, Indian benchmark indices Sensex and Nifty 50 finished slightly lower on Tuesday, 19 May, amid profit booking. The BSE Sensex dropped by 114 points (0.15%) to close at 75,200.85, while the NSE Nifty 50 decreased by 32 points (0.14%) to end at 23,618. The market decline was attributed to profit booking and global uncertainties, including ongoing US-Iran conflict worries, high crude oil prices, and rupee weakness.
Despite Brent crude prices falling by nearly 2% amid growing hope of a US-Iran peace agreement, market sentiment remained strained. As reported by PTI, the rupee reached a new all-time low of 96.52 against the US dollar on Tuesday, adding to investor concerns about currency stability. This currency weakness continues to weigh on market sentiment despite positive developments in oil markets.
According to Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities, Nifty 50 has been consolidating between 23,800 and 23,250 levels and appears to be forming a symmetrical triangular pattern. The 23,800 level acts as stiff resistance as it previously acted as critical support, while 23,150 is critical support after 23,250, with ultimate support at 23,000. Above 23,800, the next hurdles are 24,000 and 24,400, making the overall range 24,400-23,000. Only above 24,400 can one expect a larger uptrend; until then, the Index is likely to consolidate for some time longer. Short iron butterfly or short iron condor strategies may work well until this range is broken.
IEX Futures is recommended for buying in the range of ₹124-126 with stop loss below ₹119 and targets of ₹130-134. As reported by LiveMint, IEX has been consolidating within 120-130 range with short covering expected near 120 levels. Glenmark Pharmaceuticals Futures is suggested for buying in the range of ₹2,390-2,410 with stop loss below ₹2,330 and targets of ₹2,550 and ₹2,650. Glenmark has provided breakout from multiple swing resistances with increased OI indicating fresh long buildup, and there is a strong uptrend in the Nifty Pharma sector. The stock has closed above the 2,400 strike level with huge call base at this level, and the max pain is also at 2,400 levels, with multiple resistances at 2,400 taken off.
Titan Company Futures is recommended for selling in the range of ₹4,110-4,090 with stop loss above ₹4,185 and targets of ₹3,800-3,900. According to LiveMint, Titan has been forming lower tops and bottoms with decreased OI indicating long unwinding, and selling pressure is expected until monthly settlement day. The stock has witnessed huge call additions at 4,100 and 4,200 strikes, with these levels acting as strong resistance now. The 3,900 strike has witnessed some put additions and can act as the first target level, while the max pain is at 4,200 levels and the stock is trading well below that, acting as strong resistance going forward.
