Technical Analysis

WHAT LIES AHEAD : NEAR-TERM PICTURE [EasyDNNnews:PaidContentStart]

SPOT NIFTY : 
The benchmark Nifty 50 index witnessed a vol atile week, initially extending its decline for two consecutive sessions before staging a sharp recov ery in the latter half. From last Thursday’s close of 23,002.15, the index rebounded strongly from lower levels of the week to settle at 23,306.45, marking a recovery of nearly 3.5 per cent from the recent lows. The turnaround in sentiment was largely driven by news of a ceasefire announcement by US President Donald Trump, which triggered buying interest at lower levels. While uncertainty still lingers, any positive outcome from the ongoing peace talks could further support the ongoing recovery and potentially extend the bounce into a short-term rally. From a technical perspective, the index contin ues to trade within the fourth wave of the broader impulse structure, closely adhering to its typical char acteristics. The recent pullback followed by a sharp bounce fits well within the expected behaviour of this phase. Once the fourth wave completes, the fifth wave is likely to emerge, typically characterised by a sharp, fast move that often extends the prevailing trend and breaches the extreme of the prior wave. The current setup suggests that the market is in a transitional phase, preparing for the next directional move. 

On the levels front, the immediate resistance is placed around the 24,000 mark, which could act as a cap for the ongoing fourth wave bounce. On the downside, the 23,000 zone remains a crucial support level. As long as the index sus tains above this level, any retracement should be viewed as a buying opportunity. The overall setup offers a favourable risk to-reward ratio for long-side trades, although traders should remain mindful of overnight risks amid evolving geopolitical developments. 

NIFTY DERIVATIVES: 
After settling at 23,002.15 last Thursday, Nifty witnessed a recovery during the week and closed today’s session at 23,306.45. The index rebounded from lower levels, indicating some stability after the recent sharp decline. On a weekly basis, Nifty gained nearly 1.32 per cent, or 304.3 points. ATM Implied Volatility (IV) cooled off from last week’s elevated level of 28.71 to 24.79, suggesting some easing in option premiums, though volatility remains high. India VIX, however, moved higher from 22.80 to 24.64, indicating continued nervousness in the market. The Put-Call Ratio (PCR) for the upcoming weekly expiry jumped sharply from 0.6996 to 1.2505, moving closer to the overbought region, while still remaining within the neu tral zone. 

For the coming weekly expiry, total call open interest stands at 18,15,745 contracts, while total put open interest is at 22,70,600 contracts. Among the call options, deep OTM strike 25,000 carries the highest open interest at 1,26,452 contracts, followed by the 24,000 with 1,19,582, and strike 24,500 with open interest at 1,16,831 contracts, respectively. On the put side, deep out-of-the-money strike 20,000 has the highest open interest at 2,31,848 contracts, followed by the strike 21,000 with 1,24,769 contracts, and strike 22,000 with 1,24,483 contracts. The Max Pain level for the upcoming expiry is positioned at 23,300. 

STOCK STRATEGY 

AUROBINDO PHARMA LTD. .... BUY..... CMP ₹1,308.00 

BSE Code ...... 524804 
Target 1 .... ₹1,425 
Target 2 .... ₹1,471
Stoploss ...₹1,220 (CLS) 

• Current Observation: Aurobindo Pharma Ltd. is principally engaged in the manufacturing and marketing of active pharmaceutical ingre dients (APIs), generic pharmaceuticals, and related services. The company operates across key geographical segments including India, the USA, Europe, and the Rest of the World. Founded by Penaka Venkata Ramprasad Reddy and Kambam Nithyananda Reddy on December 26, 1986, and headquartered in Hyderabad.
• From a technical perspective, the stock has recently confirmed a trend reversal after breaking out of a cup and handle pattern around the Rs 1,275 level, a formation known for its strong con tinuation potential. Following the breakout, the stock witnessed a corrective phase amid broader market weakness, which can be considered a healthy pullback as it successfully retested the breakout zone. It has now resumed its upward trajectory and marked a recent high, signalling the continuation of the next leg of the rally. The stock is trading above its 200-day moving average and continues to form higher highs and higher lows, reinforcing the strength of the ongoing uptrend.
• On the financial front, the company commands a market capitalisation of Rs 76,715 crore and trades at a P/E of 21.8. It has a book value of Rs 603 per share and offers a dividend yield of 0.31 per cent. The company reports an ROCE of 14.2 per cent and an ROE of 11.1 per cent, indicating stable operational performance.
• Given these factors, we are aiming the breakout. Consider initiating a buy position with a stop loss at Rs 1,220 and an upside target range of Rs 1,425 to Rs 1,471. 
   

REVIEW OF STOCK STRATEGY 

In issue no. 23, dated March 19, 2026, we recommended pur chasing shares of Hatsun Agro Product Ltd at Rs 994.5. The stock closed above the previous important swing high and con tinuously formed a higher high, higher low formation. However, post recommendation, in the recent weakness of the market,  the stock witnessed a sell-off with high volume and traded lower. Due to this price action, our stoploss got triggered. Thus, we exited the position at Rs 885. This update is shared exclu sively through the Flash News app to ensure our subscribers receive timely and accurate information. 

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