MOFSL Predicts Nifty Could Hit 22,900, Offers 3 Stock Picks

MOFSL Forecasts Nifty Surge to 22,900, Highlights Key Stock Picks

Motilal Oswal Financial Services (MOFSL) anticipates a bullish trend for the Nifty index, projecting a potential rise towards 22,900, supported by strategic stock recommendations.

Nifty’s Positive Momentum and Key Levels

The Nifty index opened on a positive note and maintained a sideways to upward trajectory, gaining over 200 points during the session. Closing near its upper band, the index is now making higher highs and higher lows, forming a bullish candle on the daily chart. This pattern suggests strong support-based buying at lower levels. For the Nifty to continue its upward journey, it must hold above the 22,700 mark, with targets set at 22,900 and 23,000. Conversely, support levels are identified at 22,600 and 22,500.

Options Data Insights

Analyzing the options front, the maximum call open interest (OI) is concentrated at the 23,500 and 22,700 strikes, while the maximum put OI is at the 22,000 and 22,600 strikes. Call writing is observed at the 23,500 and 22,700 strikes, indicating a cautious outlook among traders. Meanwhile, put writing at the 22,600 and 22,700 strikes suggests a protective stance, reinforcing the broader trading range expected between 22,300 and 23,300, with an immediate focus on 22,500 to 23,000 levels.

Bank Nifty’s Performance and Outlook

The Bank Nifty index also opened positively, reaching 55,200 in the first half of the session. However, it later consolidated within a narrow range of 200 points. A small bullish candle formed on the daily scale indicates buying interest at lower levels, although momentum is lacking at higher zones. For a bullish outlook, the Bank Nifty must maintain levels above 55,000, with potential targets of 55,500 and 55,750. Support is observed at 54,750 and 54,500.

Top Stock Picks from MOFSL

MOFSL has identified three stocks as strong buy candidates based on their recent performance and technical indicators:

• Divi’s Laboratories (CMP ₹9,550): Recommended with a stop loss of ₹9,260 and a target of ₹10,100. The stock is bouncing back from a support zone, showing renewed buying interest and a bullish breakout.
• Multi Commodity Exchange (MCX) (CMP ₹3,310): Suggested with a stop loss of ₹3,200 and a target of ₹3,520. The stock has reversed its trend, forming a bullish Marubozu candle and indicating strong buying momentum.
• Sonacom (CMP ₹820): Buy with a stop loss of ₹795 and a target of ₹865. The stock is in an overall uptrend and is on the verge of an all-time high breakout, supported by strong buying interest.

Key Highlights

• Nifty index shows bullish momentum, closing above 22,700.
• Options data suggests a trading range between 22,300 and 23,300.
• Bank Nifty must hold above 55,000 for further upside potential.
• Divi’s Laboratories, MCX, and Sonacom identified as strong buy candidates.
• Support levels for Nifty are at 22,600 and 22,500.

Investor Note: As the Nifty approaches critical resistance levels, investors should closely monitor the identified stocks for potential entry points, while being mindful of broader market trends and support levels.