F&O Strategy: Buy Kaynes Technology, Amber Enterprises suggests Rupak De in a weak stock market today

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, dropped to their lowest levels in eight months on Monday, impacted by significant losses in major financial and information technology stocks, as investor concerns grew over slowing growth in the United States.

As of 12:40 IST, the Nifty 50 and the Sensex were both down nearly by 1%, standing at 22,582.10 and 74,563.88 points, respectively.

Throughout February, the benchmarks have faced pressure, experiencing declines in 15 out of 17 trading sessions, attributed to persistent foreign capital outflows, uncertainty regarding US tariff policies, and worries about diminishing domestic growth.

The decline in the session follows the release of data on Friday which revealed that business activity in the US fell sharply in February, suggesting that both businesses and consumers were growing more anxious about the policies of President Donald Trump’s administration.

On the F&O segments, Nifty Futures have seen a gap down opening and is trading with fresh short positions. For the monthly expiry contract, experts are seeing highest oi build up at 22,300 PUT indicating the next key support, whereas 22,700 ce followed by 22,900 is seen as stiff hurdle with fresh writing.

Technical views by Rupak De, Senior Technical Analyst, LKP Securities on F&O market

Nifty 50

Nifty 50 declined, breaking down from a bearish flag pattern on the hourly chart, indicating growing bearish sentiment among market participants. Additionally, the index closed at a multi-day low, reflecting increased selling pressure. The RSI (14) has entered a bearish crossover. In the short term, a correction towards 22,500 appears likely on the lower end, while 22,850 may remain a strong resistance on the higher end.

Open Interest Analysis: Heavy call writing was observed in Nifty 50 on the first day of the weekly expiry. Significant open interest additions were seen in 23,100 CE. On the put side, 22,500 and 22,800 saw a decent rise in open interest. Maximum Call writing seen at 23,000 strike while, maximum Put writing was visible at 22,500.

Strategy: Sentiment remains mostly as long as the Nifty 50 remains weak with a possibility of further correction.

Trade: Buy Nifty 50 13FEB 22600PE ABOVE 75 TGT 140 SL 49.

Buy Kaynes Technology India at 4,368 | Target: ₹4,600/4,800 | Stop-Loss: ₹4,178

The stock has formed a bullish engulfing pattern on the weekly chart, indicating weakening bearish sentiment and a potential strong reversal. On the daily chart, it has broken out of consolidation. Additionally, the RSI is in a bullish crossover and has exited the oversold zone. On the upside, it may reach 4,800, while support is seen at 4,178.

Buy Amber Enterprises India at 6,000 | Target: ₹6,150/6,300 | Stop-Loss: ₹5,840

Amber stock has rebounded after finding support at the 200 DMA and the previous congestion high. The RSI on the daily chart is in a bullish crossover, signaling positive momentum. On the higher side, it may move towards 6,300, while support is placed at 5,840.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.