F&O Strategy: Sell Cipla, Buy KFin Tech, MOFSL suggests Rupak De in a subdued stock market today

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, retraced their earlier gains on Monday, as worries over global trade kept investors cautious, while Reliance Industries, a key player in the index, experienced its largest drop in five months.

The Nifty 50 decreased by 19.25 points to reach 22,105.45 at 12:44 IST, while the Sensex fell by 83.62 points to 73,147.99.

Initially, the indexes surged by as much as 0.6% after data indicated that India’s economy grew by 6.2% during the October-December quarter, buoyed by heightened government and consumer expenditure.

On the F&O segment, analysts believe that for the upcoming weekly series, fresh writing is seen in 22200-22500 call options, while on the downside, the 21800 put strikes witnessed a significant buildup of positions. The LSR remained unchanged at 15% on a week-on-week basis, indicating oversold conditions.

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

Nifty 50

Nifty 50 saw a sharp decline on Friday, dropping over 400 points following a consolidation breakdown. The RSI remains in bearish territory but has entered the oversold zone. In the near term, support is expected around 21,800-22,000. A sustained move above 21,800 could drive a strong recovery, while failing to hold this level may result in another steep decline.

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 22,500 CE. On the put side, 21,800 saw a decent rise in open interest. Maximum Call writing seen at 22,500 strike while, maximum Put writing was visible at 21,800.

Strategy: Sentiment is likely to remains weak as long as the Nifty 50 remains below 22,500.

Trade: Buy Nifty 6March 22000PE ABOVE 80 TGT 130 SL 54.

Sell Cipla: TGT ₹1,360; SL ₹1,431

Cipla has failed to maintain levels above the critical moving average on the daily chart, resulting in increased selling pressure. The RSI has entered a bearish crossover and continues to decline. Furthermore, the stock has broken down from recent consolidation, indicating weak market sentiment. In the short term, it may decline towards 1360, with resistance at 1,431.

Buy KFin Technologies: Above ₹870; TGT ₹960; SL ₹829

Despite the broader market sell-off on Friday, KFin Technologies demonstrated resilience. A Marubozu candlestick formed on the hourly chart, signaling strong bullish potential and a possible near-term reversal. The RSI on the hourly timeframe is showing rising bullish momentum. In the short term, the stock could rise towards 960, with support at 829.

Buy Motilal Oswal Financial Services (MOFSL): Above ₹585, TGT ₹620, SL ₹562

MOFSL demonstrated resilience on Friday, even amid a market sell-off. The RSI on the daily chart is showing positive divergence, suggesting strengthening bullish momentum. In the short term, the stock may rise towards 620, with support at 562.

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.