Indian stock markets staged a strong recovery on Monday, with the BSE Sensex rising 776 points, or 1.02%, to close at 76,835.8, while the NSE Nifty climbed 228.50 points, or 0.9%, to 23,995.9. According to ETMarkets, this rebound came after crude oil prices collapsed about 10% to around $89 per barrel, with Brent crude futures falling more than 9% from previous highs. The recovery was driven by easing Iran-US tensions and mutual assurances that military action would be halted, reducing inflation concerns for India. India's currency also surged, with the rupee climbing 66 paise to close at 95.91 to the US dollar, nearing its all-time low from the previous week.
The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat on Tuesday, 28 July, in line with weak global market cues. According to reports from LiveMint, by 8:14 AM, the Gift Nifty was trading around the 23,963.5 level, representing a discount of 64.5 points from the Nifty futures' previous close of 24,028. The domestic equity indices ended the previous session with strong gains, with the Sensex surging 776.01 points, or 1.02%, to close at 76,835.78, while the Nifty 50 settled 228.50 points, or 0.96%, higher at 23,995.95. The recovery was supported by strong FPI inflows, a firmer rupee, and value buying in banking, auto and financial stocks.
Chandan Taparia, Head Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services Ltd, provided detailed technical analysis for the upcoming session. As reported by LiveMint, on the Nifty options front, the maximum Call Open Interest (OI) is at 24,000 then 24,200 strike, while the maximum Put OI is at 24,000 then 23,900 strike. Call writing is seen at 24,000 then 24,100 strike, while Put writing is seen at 23,900 then 24,000 strike. According to Taparia, option data suggests a broader trading range between 23,600 and 24,400 zones, while an immediate range between 23,800 and 24,200 levels. The Nifty nearly reclaimed the 24,000 mark and closed above its 50-day exponential moving average, indicating improving short-term momentum and easing selling pressure.
Sectoral trends remained broadly positive, with media emerging as the top performer, followed by IT, realty, mid and small healthcare, financial services, auto, pharma, REITs and chemicals. According to ETMarkets, oil and gas, PSU banks, private banks, construction, metals and cement were laggards. Midcap and smallcap stocks advanced significantly, with the Nifty Midcap 150 rising 1.09% and the Nifty Smallcap 250 gaining 1.32%. The India's Volatility Index (VIX) fell 9.7% to 12.66, indicating easing volatility and improving risk appetite among investors following the rebound.
Chandan Taparia has recommended three stocks for Tuesday's trading session. As reported by LiveMint, Samvardhana Motherson International is recommended with a target price of ₹157 and stop loss at ₹144, as the share price has bounced up from its 50 DEMA support zones with high traded volumes and MACD indicator showing bullish crossover. Lodha Developers receives a buy call with target price of ₹1,270 and stop loss of ₹1,160, as the stock has formed a bullish 'Pole and Flag' pattern with rising ADX line indicating strength. Cholamandalam Investment and Finance Company is suggested with a target price of ₹1,900 and stop loss of ₹1,730, as the stock is retesting breakout from consolidation zone with strong-bodied bullish candle and positive RSI momentum.
