In the fast-paced world of stock markets, having a trusted technical adviser is essential to navigate the turbulent waters of trading. Jitendra Oberoi, a seasoned expert in the field, provides valuable insights into the current state of Nifty and offers strategic stock recommendations for September 22, 2023.
Nifty’s Recent Performance
The Nifty index, as of the latest update, stands at a CMP (Current Market Price) of 19742, reflecting a decline of 159 points. This drop can be attributed to heavy selling pressure, particularly from Nifty Bank heavyweights such as SBIN, ICICI Bank, HDFC Bank, and Axis Bank. In light of this, the market setup appears to be bearish, with a strong inclination towards selling on rallies.
Oberoi predicts that Nifty may test the 19550 level in the upcoming final expiry week if it breaks the critical support level of 19700. Therefore, traders are advised to exercise caution and wait for a bounce before considering fresh short positions in both Nifty and Bank Nifty.
Options Open Interest
Key insights into Nifty’s options open interest reveal important levels:
- The highest OI (Open Interest) on the Calls side is at 20000, with 80 lakhs contracts, indicating strong resistance at this level.
- On the Put side, the highest OI is at 19700, with 52 lakh contracts, suggesting a mild support level.
Stock Recommendations for September 22, 2023
- Infosys (INFY)
- CMP: 1501.75
- Recommendation: BUY
- Infosys has managed to close above its critical resistance at 1500, where it had a substantial number of call writers (37 lakhs contracts). If the stock price continues to climb in the first hour of trading, these call-writers may face increasing pressure.
- Stop Loss: 1475
- Target: 1550-1560
- ICICI Bank
- CMP: 959.30
- Recommendation: SELL
- Large-cap private banks, including ICICI Bank, are experiencing selling pressure amid concerns about expensive valuations. A significant red candle in today’s trading session suggests a bearish trend.
- Expected Downside: Up to 920 levels in the near term.
- Bharat Forge
- CMP: 1098.80
- Recommendation: SELL
- Bharat Forge has broken a crucial trendline, indicating the possibility of profit booking in the expiry week. Traders may anticipate a decline in the stock price to around 1050 levels.
- Stop Loss: 1120
- Target: 1050
It’s important to note that Jitendra Oberoi is not a SEBI registered analyst, and the provided recommendations are not intended as buy/sell advice. Traders and investors should always consult their financial advisors before making any trading decisions or taking positions in the mentioned stocks or indices. The stock market carries inherent risks, and due diligence is crucial for informed trading.