The Indian stock market is set for a muted start with GIFT Nifty trading at 23,431, at a premium of 6.3 points over the previous close of Nifty futures at 23,424.70. According to reports from LiveMint, equity benchmark indices declined for the fourth straight session on Tuesday, with both the Sensex and Nifty 50 dropping nearly 2%. The 30-share BSE Sensex plummeted by 1,456.04 points, or 1.92%, closing at 74,559.24. At one point during the day, it fell by 1,565.78 points, or 2%, reaching 74,449.50. The decline was driven by rising crude oil prices and uncertainty over the West Asia conflict, with continuous outflows of foreign funds and the rupee falling to an all-time low affecting investor sentiment.
As reported by LiveMint, the Nifty 50 has closed significantly below the 23,800 level, with the weekly expiry closing at its day's low, indicating that overall momentum is now more negative. Based on FII flow and rising India VIX, it appears the short-term trend is negative, as FII has increased their short positions from 1.75 lakh contracts to 2.20 lakh contracts by Monday's close. The options now suggest that 24,000 is an immediate hurdle, as it has the highest call base, and until that level is taken off, the bears have the upper hand. On the lower side, 23,000 levels have the highest OI on an immediate basis, hence that may act as support, making the short-term range 23,000-24,000.
According to LiveMint reports, Max Healthcare Institute Futures is recommended for buying in the range of ₹1,010-1,020, with stop loss below ₹970 and targets of ₹1,080-1,120. The stock has bounced back from recent lows with a decrease in OI in the futures segment, indicating short covering. The Nifty healthcare index has broken out to the upside and is likely to outperform the Nifty 50 in the near term. The stock has witnessed significant put base at ₹1,000, which is quite nearby, making the risk-reward favorable for the bulls.
As reported by LiveMint, KPIT Technologies Futures is recommended for selling in the range of ₹700-690, with stop loss above ₹720 and targets of ₹665-645. KPIT has been trading weakly, forming lower highs and lower lows with increasing OI in the futures segment, indicating overall short positions. Since the Nifty IT is trading with a negative bias, the short-term trend appears negative, and the stock is likely to break its previous swing low. Eternal Futures is also recommended for selling in the range of ₹238-242, with stop loss at ₹250 and targets of ₹225-215. Eternal had witnessed a bounce back on account of short covering, but with price reversing again from recent highs, OI has increased, signaling a short build-up.
