Trade Setup | Things To Know Before Market Opening - 22 Feb 2024 Thursday

Stock market today: On account of weak global cues after Tuesday's sell-off on Wall Street, the Indian stock market ended lower on Wednesday. The Nifty 50 index lost 141 points and closed at the 22,055 level, the BSE Sensex shed 434 points and ended at the 72,623 mark whereas the Bank Nifty index finished 74 points lower at the 47,019 level. In the broad market, the small-cap and the mid-cap indices fell more than the Nifty 50 index even as the advance-decline ratio fell sharply to 0.52:1.

"The winning streak for the benchmark index finally came to a halt after six consecutive sessions. Also, the development of the last three sessions got eloped with one day fall, though the 22K mark showed its significance in cushioning the index by the fag end of the session," said Osho Krishan, Sr. Analyst - Technical & Derivative Research at Angel One.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — February 22

On the outlook for the Nifty 50 today, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities said, "The bullish chart pattern like higher tops and bottoms continued as per daily timeframe chart and Wednesday's swing high of 22,249 could now be considered as a new higher top of the sequence. Hence, short-term weakness could be expected and the next lower supports to be watched at 21,850 to 21,750 levels."

Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher said, "Bank Nifty also resisted near the 47,400 to 47,500 zone, and with some profit booking seen in some of the frontline banking stocks, we can expect a small breather or consolidation in the coming days. Both indices' daily trends have remained positive and will require additional positive upward movement to maintain the trend."

On the outlook for the Indian stock market today, Osho Krishan of Angel One said, "The broader view remains intact with the bullish biases, but it seems challenging to hold on to higher grounds with conviction. Hence, one is required to have a pragmatic approach of the ‘Buy on dips’ and ‘Sell on the Rise’ until we see a decisive participation of the bulls in carrying momentum. As far as levels are concerned, a series of support zones could be seen on an immediate basis, starting from the bullish gap of 21969-21953 to the placement of 20 DEMA at 21850. On the flip side, strong resilience can be seen from 22150-22200, and an authoritative closure above the same could only provide thrust to propel the index higher for the 22350-22400 zone in the comparable period. Meanwhile, the high-beta and supportive index Bank Nifty needs to be watched closely for developments as its setup would certainly dictate the intermediate trend for the benchmark."

Speaking on the Nifty Call Put option data, Chinmay Barve, Head of Derivative & Technical Research at Profitmart Securities said, "One of the major total Call open interest was seen at 22200 and 22300 strikes with total open interest of 278921 and 209351 contracts respectively. The strike price of 22200 saw one of the major open interest addition of 172949 contracts," adding, "One of the major total Put open interests was seen at 22000 and 21800 strikes with a total open interest of 159755 and 137208 contracts respectively. One of the major Put open interest additions was seen at 21900 strikes which added 41510 contracts in open interest."

On Bank Nifty Call Put option data, Chinmay Barve of Profitmart Securities said, "One of the major total Call open interest was seen at 47000 and 47500 strikes with total open interest of 95094 and 78362 contracts in open interest. A strike price of 47500 saw one of the major additions of 37400 contracts in open interest," adding, "One of the major total Put open interest was seen at 46500 strikes with total open interest of 63732 contracts. One of the major Put open interest additions was seen at 47000 strike which added 39101 contracts in open interest."

On shares to buy today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi; Shiju Koothupalakkal, Technical Analyst at Prabhudas Lilladher; and Kunal Kamble, Sr. Technical Analyst at Bonanza Portfolio — recommended eight stocks to buy or sell today.

1] Blue Star: Buy at ₹1271.55, target ₹1333, stop loss ₹1244.

2] Tata Consumer: Buy at ₹1160.75, target ₹1215, stop loss ₹1132.

3] Shilpa Medicare: Buy at ₹440, target ₹475, stop loss ₹425.

4] DLF: Buy at ₹885, target ₹910, stop loss ₹865.

5] Gujarat Gas: Buy at ₹565.55, target ₹590, stop loss ₹550.

6] Godrej Properties: Buy at ₹2343.35, target ₹2430, stop loss ₹2275.

7] Carysil: Buy at ₹1040.40, target ₹1110, stop loss ₹1010.

8] Berger Paint: Buy at ₹573.60, target ₹591, stop loss ₹565.

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

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