Latest news with #HardikMatalia
Economic Times
2 days ago
- Business
- Economic Times
Deploy Broken Wing in LIC Housing Finance to benefit from bearish outlook
The Broken Wing Options Strategy, specifically the Broken Wing Butterfly (BWB), is a variation of the classic butterfly spread, which is used to take advantage of directional market moves while reducing risk and cost. Synopsis LIC Housing Finance has entered a bearish phase after breaking down from a Rising Wedge pattern. With weakening technicals, rising volumes, and a declining RSI, analysts suggest a Broken Wing Butterfly strategy to benefit from the stock's downside while maintaining a defined risk profile. LIC Housing Finance shares are currently trading at Rs 590.30 and have recently entered a corrective phase after a prolonged consolidation. The stock had formed a Rising Wedge pattern on the daily chart—a bearish setup that often signals a potential reversal. ADVERTISEMENT After facing consistent rejection from higher levels, it has now given a breakdown below the wedge, indicating growing selling pressure and a possible trend stock has slipped below all its key short-term and medium-term exponential moving averages (EMAs), reflecting weakening structure and a lack of buying interest at crucial support zones. 'This breakdown is further supported by increasing volumes, hinting at strong participation from sellers,' noted Hardik Matalia, Derivative Analyst at Choice Broking. The Relative Strength Index (RSI) is currently at 37.21 and trending downward, suggesting intensifying bearish momentum with room for further downside.'If LICHSGFIN breaches below the critical support level of Rs 580, it may trigger additional downside and extend the decline towards lower levels in the near term. Sustaining below this zone would validate the pattern breakdown and invite further selling interest,' he added. ADVERTISEMENT On the derivatives front, the highest Put Open Interest (OI) is at the Rs 580 strike, making it a crucial support further added that a breakdown below this could lead to unwinding of long positions. On the Call side, the highest OI is seen at Rs 600, followed by Rs 620, which are expected to act as immediate resistance levels on any attempted pullback. ADVERTISEMENT With this, Hardik Matalia suggests deploying a Broken Wing strategy in LIC Housing Finance to play the bearish outlook in the stock. The Broken Wing Options Strategy, specifically the Broken Wing Butterfly (BWB), is a variation of the classic butterfly spread, which is used to take advantage of directional market moves while reducing risk and cost. It is called a "broken wing" because one of the wings of the butterfly is intentionally unbalanced to create a skewed risk/reward strategy lowers the initial cost or generates a credit while limiting both risk and reward on one side of the trade, typically used to capitalise on small directional moves with defined risk. ADVERTISEMENT Below is the payoff graph of the strategy: (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.) (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
Hans India
3 days ago
- Business
- Hans India
GIFT Nifty starts lower by 40 points; key levels to watch in today's session
Declines in private bank and realty GIFT Nifty today pulled GIFT Nifty lower. Analysts expect the market to remain under pressure amid mixed Q1 earnings, continued FII selling and lack of progress on the India-US trade deal ahead of the nearing deadline. Stock market setup 2025 action will likely continue as earnings season gathers pace. Indian stock market update: Today's Forecast for Sensex, Nifty 50 & Bank Nifty Sensex Prediction With the formation of a bearish candlestick on the daily chart and lower high on intraday charts, we could see some more near-term selling. 'Market sentiment will likely remain subdued as long as the Sensex trades below the 81,100 level. If we see some more selling pressure, then there is a possibility of the index retesting the 80,500–80,350 zone. On the other hand, if we see a decisive move above 81,100, then a recovery rally may start, with the Sensex likely to test the 81,400 level. There could be some further room for the Sensex to the 81,700 level,' Shrikant Chouhan, Head of Equity Research at Kotak Securities, told BloombergQuint. Nifty OI Data In the GIFT Nifty pre-market, the 24,800 strike on GIFT Nifty saw the maximum call option interest, which could turn out to be the resistance level. The 24,500 strike on the GIFT Nifty had the most put option interest, which could provide support around that level. So, a firm close above 24,800 would be a pre-requisite to revive the bullish momentum, change the sentiment and move higher, said Hardik Matalia, Derivative Analyst - Research at Choice Equity Broking. Nifty 50 Prediction "The Nifty 50 index lost 0.63% on July 28 for its third straight session of losses." 'The market ended with a weak closing today, giving a red candle with selling on higher levels. It shows that the market is taking some support. If we see a move higher, there could be a strong resistance. Traders can take an opportunity to sell in this situation, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, told BloombergQuint.
Hans India
3 days ago
- Business
- Hans India
Sensex, Nifty edge up after mild early losses; realty stocks gain
Mumbai: The Indian stock market entered the green territory on Tuesday after a flat opening amid mixed global cues. At 9.29 am, Sensex was nearly unchanged adding just 1.69 points at 80,892 points. Nifty was up 16 points or 0.06 per cent at 24,696. Amid mixed global cues, the Indian indices at the opening bell opened lower with Nifty around 24,600. 'After a negative opening, Nifty can find support at 24,600 followed by 24,500 and 24,300. On the higher side, 24,800 can be an immediate resistance, followed by 24,900 and 25,000,' said Hardik Matalia from Choice Equity Broking. A sustained move above 25,000 is crucial for any meaningful pause in the ongoing selling pressure. As long as the index trades below the 25,000 mark, the short-term outlook remains weak, and a 'sell-on-rise' strategy is advisable, he added. In the opening trading session, Nifty realty were leading the market, while Nifty IT declined 0.32 per cent. Nifty Bank ended almost flat down 0.01 per cent. In the Nifty pack, JSW Steel, Jio Financial, IndusInd Bank, Reliance Industries, and Shriram Finance emerged as the top gainers. On the contrary, Eternal fell with 1.64 per cent drop, followed by Infosys, SBI Life Insurance, Wipro, and Bharat Electronics. Analysts said that the major issue weighing on markets is that the expected trade deal between India and the US has not happened so far and the probability of a deal before the August 1 deadline is becoming lower. In US markets, while the Dow Jones slipped 0.14per cent, the Nasdaq edged up 0.33 per cent. The S&P 500 ended nearly flat with a marginal gain of 0.02 per cent. In Asia, sentiment remained broadly subdued as investors awaited the outcome of the ongoing U.S.-China trade talks. Japan's Nikkei 225 fell 0.91 per cent, and Hong Kong's Hang Seng Index declined 0.93 per cent. South Korea's Kospi advanced 0.59 per cent. China's markets were nearly flat in the morning session. Foreign Institutional Investors (FIIs) continued their selling streak for the sixth day, signaling persistent pressure on the broader market sentiment. FIIs sold equities worth Rs 6,082 crore yesterday, while Domestic institutional investors (DIIs) bought equities worth Rs 6,764 crore.
Reuters
7 days ago
- Business
- Reuters
India's equity benchmarks fall, dragged down by Bajaj Finance
July 25 (Reuters) - India's equity benchmarks fell in early trade on Friday, dragged down by Bajaj Finance on asset quality concerns, while investors weighed the newly signed trade pact with Britain that will cut tariffs on goods ranging from textiles to whisky and cars. The Nifty 50 (.NSEI), opens new tab fell 0.53% to 24,930.9 points and the BSE Sensex (.BSESN), opens new tab lost 0.45% to 81,807.28 as of 9:55 a.m. IST. Thirteen of the 16 major sectors logged losses. The broader small-cap (.NIFSMCP100), opens new tab and mid-cap (.NIFMDCP100), opens new tab indexes fell 0.8% and 0.5%, respectively. Bajaj Finance ( opens new tab dropped 5% as multiple brokerages flagged asset-quality stress in the MSME segment, despite the non-bank lender reporting a profit beat in the June quarter. It was the top decliner on the Nifty 50. Nestle India ( opens new tab lost 1%, extending a more than 5% slip on Thursday after posting a lower quarterly profit hurt by rising costs. "Market sentiment has turned cautious due to weak earnings in Bajaj Finance, IT and consumer stocks," said Hardik Matalia, analyst at Choice Equity Broking. Meanwhile, India and Britain signed a free-trade agreement (FTA) on Thursday during Prime Minister Narendra Modi's visit to London, sealing a deal to lower tariffs on goods from textiles to whisky and cars and allow more market access for businesses. Although the FTA should boost sentiment, the market is unlikely to see any major upside until there is clarity on U.S. trade negotiations, three analysts said. Bucking the trend, SBI Life Insurance ( opens new tab gained 2.5% after posting a higher quarterly profit driven by policy renewals. Trident ( opens new tab rose 4.7% after reporting a rise in first-quarter profit on lower expenses and on the back of the India-UK trade deal. Indian Energy Exchange ( opens new tab, which sank 30% on Thursday on fears of rising competition from new pricing rules, jumped 9%, aided by quarterly profit growth.
Hans India
24-07-2025
- Business
- Hans India
Indian stock market opens flat, IT stocks under pressure
Mumbai: The Indian stock market opened flat on Thursday as IT companies experienced selling pressure amid mixed global cues. At 9.28 am, Sensex slipped 110 points or 0.13 per cent to 82,615 and Nifty slipped 13 points or 0.05 per cent to 25,206. Sectorally, Nifty IT underperformed with a loss of 1.17 per cent. All other sectors show marginal dips to moderate gains. Bank stocks showed moderate losses up to 0.20 per cent. Midcap and smallcap stocks saw selling pressure. Nifty midcap 100 index was down 0.39 per cent at 59,148 and Nifty smallcap 100 index was down 0.07 per cent at 18,879. In the Nifty pack, Dr. Reddy's Laboratories led the gainers (3.07 per cent), followed by Tata Motors (1.51 per cent). Tata Consumer Products, Eicher Motors, JSW Steel and Tata Steel were other major gainers. Trent, Kotak Mahindra Bank, and Bajaj Finance were among losers in early trade. "Market sentiment remains cautiously optimistic amid heightened volatility and mixed global cues. Nifty 50's rebound highlights buyer strength at lower levels. A sustained move above 25,250 could potentially open the path toward the 25,330 mark. On the downside, immediate support is placed at 25,125, followed by 25,000," said Hardik Matalia from Choice Equity Broking Private Limited. The Bank Nifty outperformed the broader index, rising 454 points and forming a bullish candlestick, indicating renewed buying interest, he added. Both Asian and US indices posted strong overnight gains, lending a positive backdrop for Indian markets as they open. In the US, the Dow Jones Industrial Average advanced 1.14 per cent. Nasdaq rose 0.61 per cent, and the S&P 500 added 0.78 per cent. According to analysts, the US striking trade deals with many countries is slowly removing concerns surrounding tariff wars. Good corporate earnings in the US are providing the fundamental support to the market. In Asian markets, the Nikkei 225 continued a huge upswing for the second consecutive day (1.97 percent), and Indonesia's Jakarta Composite climbed 1.70 per cent. Hong Kong, Shanghai and Seoul were in the green zone. On July 23, foreign institutional investors (FIIs) were net sellers for the fifth consecutive session, offloading stocks worth Rs 4,209 crore. In contrast, domestic institutional investors (DIIs) remained strong buyers for the 12th straight day. They net purchased shares worth Rs 4,358 crore.
