The Nifty 50 surged 0.93% or 207.40 points) to close at 22,544.70, successfully reversing previous losses. Sensex followed suit, gaining 0.83% or 609.86 points to settle at 74,340.09, driven by broad-based buying.
Meanwhile, Nifty Bank edged up 0.28% or 137.75 points to 48,627.70, signalling a moderate recovery in banking stocks. The market’s positive momentum reflects renewed investor confidence, setting the stage for further gains.
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The markets saw a broad-based recovery on Thursday with strong sectoral performances leading the charge. Oil & gas sector emerged as the top performer, surging 2.59%, while metal stocks followed closely, gaining 2.34%. The energy pack also witnessed a robust uptrend, rising 2.03%, further strengthening the bullish momentum
However, the realty index remained flat, ending the session with a marginal decline of 0.17%. Apart from this, all other sectors performed well, fueling the bullish sentiment and driving the market higher.
The bulls dominated Thursday’s session, with strong performances across key sectors. Asian Paints led the rally, surging 4.78%, while Coal India followed closely with a 3.90% gain. Hindalco climbed 3.74%, and BPCL added 3.60%, further boosting market sentiment.
While the broader market showed strength, Tech Mahindra led the downside, dropping 2.25%. Bharat Electronics and Trent also struggled, each slipping 0.72%, as financial stocks underperformed compared to other sectors.
Despite these losses, the overall market remained positive, fueled by strong buying in other key sectors.
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Indian Stock Market Outlook
As discussed in our earlier report, the maximum open interest (OI)) was at 22,500, and we touched this level on Thursday, the expiry day.
This confirms that bulls are back in the market. The next level to watch out for is 22,680. If we cross this level, we may see a strong pullback towards 22,800–22,950.
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Options Data Analysis
On the call side: The maximum OI for the monthly expiry is at 23,000 CE (call option), where 2.40 lakh contracts were added today, mostly by sellers.
Strikes shifting: Positions from 22,700 CE, 22,750 CE, and 22,800 CE have started shifting towards the 23,000 CE strike, indicating strong resistance at higher levels.
On the put side: The maximum OI is at 22,500 put options, where 6.40 lakh contracts were added today, suggesting strong support at this level.
Technical Indicators
Hourly charts: The ADX is above 30, indicating that the bullish momentum is likely to continue.
FII & DII Data
FIIs remain net sellers in the cash market this month with ₹11,089 crores.
DIIs, on the other hand, have bought stocks worth ₹17,012 crores, supporting the market.
With 22,500 acting as strong support and options data suggesting a shift towards higher strikes, we need to watch 22,680 for a potential breakout. If the market sustains above this level, a further rally towards 22,800–22,950 is likely. However, 23,000 CE remains a significant resistance zone due to high call writing.
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Three stocks to buy, as recommended by Ankush Bajaj:
Asian Paints: Buy at ₹2,267 | Target ₹2,340-2,360 | Stop loss ₹2,230
On hourly chart, the stock has given upper channel breakout from recent highs to low. Also, on hourly chart the average directional index (ADX) is trading at 35.54 and moving average convergence divergence (MACD) at 23, showing strong bullish momentum.
Garware Hi-Tech Films: Buy at ₹4,490 | Target ₹4,875-4,925 Stop loss ₹4,348
Stock is trading near 61.8% retracement from 5384 highs and 3140 lows. Also, major Garware Hi-Tech Films Ltds on hourly charts showing bullishness, so if stock sustains above 4531 level, expecting a good up trend in coming days.
ONGC: Buy at ₹232.60 Target ₹244-248 | Stop loss ₹ 226
Stock has bounced back from a strong demand zone at 215-220 levels and is now trading at 232.Expecting a rally till 240-245 levels.Traders should maintain a strict stop loss because this stock is trading in a downtrend in the bigger picture.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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