F&O Strategy: Buy HPCL, CDSL and Canara Bank, suggests Rupak De amid positive trade in stock market today

Stock market today: The Indian stock markets continued their robust rally for the second week in a row, supported by substantial foreign investments and a rebound in domestic economic indicators.

On Monday, the benchmark indices began with significant increases, reflecting strong investor confidence. The Nifty 50 index opened at 23,515.40, showing an increase of 165 points or 0.71 percent, while the Sensex jumped by 550 points or 0.72 percent to start at 77,456.27.

This positive trend comes after an impressive performance the previous week, where both indices gained over 4 percent, marking their best weekly performance in the last four years.

The analysts emphasised that the current global economic and political landscape continues to present uncertainty for governments, businesses, and consumers alike. Investors are vigilant regarding disturbances to the long-standing 80-year world economic and political framework, especially with a hot conflict in Europe, escalating tensions with China resembling a cold war, and ongoing unrest in the Middle East contributing to market worries.

In the F&O Segment, experts noted that the benchmark index, Nifty 50, soared over 4 percent to reclaim 23,350. The Put-Call Ratio has slightly increased from 1.08 to 1.16 on a weekly basis. The Open Interest of Nifty 50 Futures decreased by 3.32%. On the derivatives front, analysts observed strong short coverings in key indices, levitating the undertone of the broader markets.

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

Nifty 50

Nifty 50 remains in an upward trajectory after breaking out of a falling trend line, driven by positive sentiment. In the last trading session, the index faced resistance at the 21-week exponential moving average (EMA), positioned at 23,382. A decisive move beyond 23,400 could propel the index higher by another 200 points, with the next resistance level at 23,600. A sustained breakout above 23,600 could potentially ignite another leg of the rally.

However, if the index fails to surpass 23,400, it may enter a phase of near-term consolidation.

Open Interest Analysis: Significant open interest additions were observed in 23,600CE, while on the put side, 23,000 and 23,300 saw a notable increase in open interest. The maximum call writing was recorded at 23,600 strikes, whereas substantial put writing was evident at 23,000, indicating strong support at this level.

Strategy: Sentiment is likely to remain strong as long as the Nifty 50 remains above 23,300.

Trade: Buy Nifty 50 27 March 23400CE ABOVE 115 TGT 160 SL 84.

Buy Hindustan Petroleum Corporation Ltd (HPCL) at ₹357 | Target: ₹370/380 | Stop Loss: ₹343

HPCL share price has confirmed an inverted head and shoulders breakout on the daily chart, reflecting increased bullish sentiment that could propel the stock higher. The price has also cleared both the 38.2% and 50% Fibonacci retracement levels of the prior corrective phase, reinforcing the positive bias. Furthermore, the stock is holding above its 21-day EMA, lending additional strength to the uptrend. In the near term, prices may move towards ₹370/380, with crucial support at ₹343.

Buy Central Depository Services Ltd (CDSL) at ₹1,217 | Target: ₹1,280/1,330 | Stop Loss: ₹1,159

CDSL share price has broken past its previous swing high on the daily chart, reflecting improving sentiment. The stock is also trading above the 21-day EMA, while the RSI (14) has entered a bullish crossover and is trending upwards. This momentum suggests a potential upside towards 1,280/1,330 in the short term, with key support located at 1,159.

Buy Canara Bank at ₹87.50 | Target: ₹93/97 | Stop Loss: ₹84

Canara Bank share price recently rebounded from support near its previous swing low on the daily chart and has since broken above its prior swing high, signalling renewed bullishness. The price is now comfortably above the 21-day EMA, supported by a bullish RSI (14) crossover. In the short term, the stock could rally towards 93/97, while key support is established at 84.

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.