Market Outlook and Trends
The Indian stock market is poised to open higher on Tuesday, as per Chandan Taparia, driven by favorable global market trends. Both the Sensex and Nifty 50 are expected to continue their upward momentum following a robust six-day rally. The Gift Nifty trends also indicate a positive opening for key stock market indices in India.
On Monday, benchmark indices recorded significant gains, marking the sixth consecutive session of growth. The Sensex surged by 1,078.87 points (1.40%) to close at 77,984.38, while the Nifty 50 rose by 307.95 points (1.32%), settling at 23,658.35.
According to Chandan Taparia, Head of Derivatives and Technicals at MOFSL Wealth Management, the Maximum Call Open Interest (OI) is positioned at the 24,000 and 24,500 strike levels, whereas the Maximum Put OI is observed at 23,000 and 23,500 strikes. Call writing activity has been noted at the 24,200 and 24,400 strikes, while Put writing is active at 23,500 and 23,600. Taparia suggests that this data indicates a broad trading range between 23,000 and 24,000, with an immediate range between 23,400 and 23,800 levels.
Nifty 50 and Bank Nifty Performance
The Nifty 50 index demonstrated steady growth on March 24, with continuous buying activity throughout the session. The index reached a high of 23,708 before closing around the 23,650 mark. Over the past several sessions, Nifty 50 has consistently followed a pattern of opening higher, experiencing brief dips, and recovering with sustained buying pressure, reflecting strong bullish sentiment. Taparia emphasizes that the index must hold above the 23,500 level to sustain its upward trajectory, with potential targets of 23,800 and 24,000. Support levels are now positioned at 23,500 and 23,333.
Meanwhile, the Bank Nifty index exhibited a consolidative yet positive movement, closing with over 2% gains on Monday. The index formed a bullish pattern on the daily chart and has continued a higher-low structure over the last eight sessions. Taparia highlights that Bank Nifty must remain above the 51,500 level for further gains toward 52,000 and 52,250. On the downside, support is established at 51,500 and 51,250 levels.
Stock Recommendations by Chandan Taparia
Chandan Taparia has identified three stocks with strong technical patterns, recommending them for purchase on March 25.
1.Chambal Fertilisers & Chemicals
Buy | Target Price: ₹670 | Stop Loss: ₹595
Chambal Fertilisers has broken out of a consolidation phase on the daily chart, supported by above-average trading volumes. The rising ADX line confirms a strengthening uptrend.
2. L&T Finance
Buy | Target Price: ₹170 | Stop Loss: ₹154
L&T Finance has broken out of a rectangle pattern, supported by a large bullish candle, and has surpassed its 200-day exponential moving average (DEMA), signaling a trend reversal. The MACD indicator also indicates positive momentum.
3. HUDCO (Housing & Urban Development Corporation)
Buy | Target Price: ₹224 | Stop Loss: ₹202
HUDCO stock has crossed above its neckline in a head-and-shoulders pattern, confirming an uptrend. The RSI momentum indicator is favorably positioned, supporting bullish sentiment.
With the Indian stock market experiencing sustained growth, these recommendations reflect key opportunities for investors seeking to capitalize on market trends.
