Nykaa buy, LIC sell recommendations for tomorrow by Motilal Oswal analyst

The Nifty 50 gained 0.60% to 22,555.75, while the Sensex rose 0.66% to 72,382.47, following eight consecutive weeks of decline driven by foreign selling, high oil prices and rising global bond yields.

Sentiment improved after softer-than-expected US jobs data lowered expectations of a Federal Reserve rate hike, supporting emerging-market assets including Indian equities.

Chandan Taparia, Head of Derivatives Technicals at Motilal Oswal Financial Services Ltd, recommended buying Nykaa (FSN E-Commerce Ventures) and selling LIC 27 October futures for the next trading session.

For Nykaa, Taparia cited a bullish RSI crossover, renewed buying interest and a breakout above the ₹350 zone, with an upside target of ₹360 and a stop loss at ₹328.

For LIC, he recommended a sell position targeting ₹366 with a stop-loss at ₹400, based on weak price structure, selling pressure at higher levels and a potential breakdown below ₹385.

On the Nifty options front, maximum call open interest was observed at 22,600 and 22,800 strikes, while maximum put open interest was at 22,500 and 22,400 strikes.

Taparia noted that call writing was seen at 22,600 and 22,550 strikes, and put writing at 22,500 and 22,400 strikes, suggesting a broader trading range between 22,100 and 22,900, with an immediate range of 22,300 to 22,800.

The Nifty 50 opened with a gap up but faced rejection at higher levels, found support near 22,400 and recovered in the latter half of the session, forming a Doji candle indicating indecisiveness.

Taparia added that if Nifty holds above 22,650, a bounce toward 22,750 and 22,850 is possible, while failure to hold could lead to weakness toward 22,400 and 22,300.

Bank Nifty opened positively and rose to 55,200 initially but failed to sustain gains, drifting to 54,500 later, forming a small-bodied candle with longer shadows.

He stated that Bank Nifty must hold above 54,750 for a bounce toward 55,000 and 55,250, while a break below could trigger weakness toward 54,500 and 54,250.

Nykaa has corrected from recent highs, negated its sequence of lower highs and bounced from strong support around ₹320, with volumes indicating renewed interest.

LIC remains in a downtrend, showing small bounces met with selling pressure, trading below short-term moving averages and forming bearish candles, reinforcing the bearish setup.

The analysis is provided for educational purposes only and does not constitute investment advice. Investors are advised to consult certified experts before making decisions.