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Business News/ Markets / Stock Markets/  Stock in focus: Rajesh Palviya of Axis Securities recommends to buy, hold, and accumulate MCX today

Stock in focus: Rajesh Palviya of Axis Securities recommends to buy, hold, and accumulate MCX today

Stock in focus: Rajesh Palviya has recommended to buy, hold, and accumulate Multi Commodity Exchange of India Ltd (MCX) today.

Stock in focus: Rajesh Palviya of Axis Securities recommends buying, holding, and accumulating MCX during Friday's session. Premium
Stock in focus: Rajesh Palviya of Axis Securities recommends buying, holding, and accumulating MCX during Friday's session. 

Stock Market News: Domestic equity benchmark indices, the Sensex and the Nifty 50, started Friday's trading day lower tracking their Asian counterparts due to concerns over a possible escalation in geopolitical tensions in the Middle East. Information technology (IT) stocks were also adversely affected by Infosys' post-earnings decline.

The Nifty 50 fell by 183.55 points, begin trading at 21,812.30, while the Sensex fell by 591.21 points, kicking off at 71,898.32.

Nine of the Nifty 50 firms saw rise, while a staggering 41 saw declines, reflecting the gloomy mood of the market.

BPCL, Bajaj Auto, Infosys, and Axis Bank were the noteworthy lossers among the Nifty 50 companies, while gainers were ONGC, Apollo Hospital, ITC, Bharti Airtel, and HDFC Bank.

Also Read: Sensex Today Live Updates : Sensex down 500pts, Nifty down 150 pts at 21,840, as Iran-Israel tension escalates

According to Dr. V K Vijayakumar, Chief Investment Strategist of Geojit Financial Services, the markets have been rattled by reports of a probable rise in Iran-Israel conflict. Increased anxiety in the equity markets is reflected in the notable downturn in Asian markets and the dramatic declines in US futures. The bond markets also provide challenges. 

Yesterday saw significant FII selling that reached 4,260 crores due to the sudden increase in US bond rates. In the near future, further FII selling is likely to occur, which will increase pressure on largecaps. Investors could hold off until the geopolitical situation becomes more clear. It is highly uncertain, said Vijayakumar.

Also Read: Stock market today: Sensex, Nifty fall for 4th consecutive session; investors lose nearly 9 lakh crore in 4 days

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Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities

With the current close, the benchmark index is approaching the lower end support zone (22,000) of the five-month "up-sloping channel," which remains a crucial support zone to watch for. Hence, any violation of 22,000 levels on a closing basis may cause a short-term trend reversal, which may take the index towards 21,600–21,500 levels. On the flipside, 22,300–22,500 levels remain a supply zone, said Rajesh Palviya, SVP, Technical and Derivatives Research, Axis Securities.

The Nifty 50 in the current series has witnessed a short-build with a price cut of -1.80% (405 points) and an increase in open interest by approximately 20%, indicating bears have the upper hand in the market. As per options data for the monthly expiry scheduled on 25th April, significant CALL writing is seen at 22,300, 22,400, and 22,500 strikes, indicating strong resistance, while put strikes with high open interest concentration were 22,000, 21,800, and 21,500, hinting towards support, explained Palviya. 

Also Read: Gold prices jump after escalation in Iran-Israel war. Should you buy in this rally?

Stock in focus today - Stock recommendation for Friday by Rajesh Palviya

Multi Commodity Exchange of India Ltd (MCX) - (CMP: 3,920)

With the current close, the stock has decisively broken out of its three-month "multiple resistance" zone of 3,900 levels on a closing basis, indicating positive bias. In the past couple of weeks, rising volume has indicated increased participation. Recently, the stock has recaptured its 20, 50, and 100-day SMA and rebounded sharply, indicating a strong comeback of bulls. The daily and weekly strength indicator RSI has turned bullish, showing rising strength, said Rajesh. 

Investors should buy, hold, and accumulate this stock, which has an expected upside of 4,200–4,400 and a downside support zone of 3,760–3,660, advised Palviya. 

MCX has seen price gains of 16% (546 points) in the current expiry and a decrease in open interest of -10%, indicating shorts are being squeezed. In the April series, there has been a high OI concentration at 4000 call strike, followed by 4,100 and 4,200, indicating a probable resistance zone, while strong support is seen at the 3,800 level as significant put writing has been seen at the same level, followed by 3,850 and 3,900, explained Rajesh. 

Also Read: Stock market today: Trade set up for Nifty 50 to Sensex, seven stocks to buy or sell on Friday — 19th April

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 decision.

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Published: 19 Apr 2024, 10:00 AM IST
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