Markets closed in the green on Friday despite a huge gap-down opening of almost 300 points due to soft global cues. Nifty closed below 10,000 which might act as stiff resistance. The index managed to close at 9,972.90, adding 70.90 points. Auto, reality and PSU banks closed on a positive note, but IT stocks closed in the red mark. Nifty bank closed at 20,654.50 adding 129.35 points from the previous day’s closing.
As per weekly option data, handful of put writing on higher strikes ranging from 9,400 to 9,700 is seen which shows Nifty might witness support in subzone of 9,500. 9,500 also is likely to act as a strong support as maximum put OI is placed here. But Nifty is likely to face stiff resistance at 10,000 as maximum call OI is placed here after 10,500 strike.
We might witness strength only if Nifty breaks level of 10,000. Therefore, traders should try to create short position keeping close eye on 10,000, as it might act as a resistance for this weekly expiry.
We can see a big momentum in following stocks:
Buy: Escorts (Above Rs 980)
Target: Rs 1,045
Stop loss: Rs 940
The stock has made bullish “Marubozu candlestick” in daily charts and has bounced from its important moving average. Further, the stock is witnessing resistance breakout from 980, which might lead to more upward movement. Considering the technical evidence discussed above, we recommend buying the stock above Rs 980, for the target of Rs 1,045, keeping a stop loss at Rs 940 on closing basis.
Buy: Apollo Hospitals Enterprise (Above Rs 1,410)
Target: Rs 1530
Stop loss: Rs 1355
The stock has made bullish “Marubozu candlestick” in daily charts and has bounced from its important moving average. Further, it is witnessing resistance breakout from Rs 1,410, which might lead to more upward movement. We recommend buying the stock above Rs 1,410, for the target of Rs 1,530, keeping a stop loss at Rs 1,355 on closing basis.
Disclaimer: Gaurav Garg is Head of Research at CapitalVia Global Research Limited- Investment Advisor. The analyst does not hold position in any of the stocks mentioned above.