Nifty likely to face stiff resistance at 10,300: Gaurav Garg of CapitalVia

Indices moved further on strong global cues; Nifty above its key resistance placed 10,140


Market traded with positive sentiments as global markets continue to inch forward and nifty closed on strong note on weekly basis. Nifty managed to close above 10,000 mark but broader indices continue to shine. Nifty managed to close at 10,142.20 adding 113.40 points. PSU banks, and metal closed with positive note, but FMCG and IT stocks closed in the red zone. Nifty bank closed at 21,034.50 adding 644.05 points from the previous day’s closing.

As per weekly option data, handful of put writing on higher strikes ranging from 9,800 to 10,100 is seen which shows Nifty might witness support in subzone of 10,000, also might act as support as maximum put OI is placed here. But Nifty likely to face stiff resistance at 10,300 as maximum call OI is placed here after 10,500 strike. We might witness weakness only if Nifty breaks level of 10,000. Therefore, traders should try to create long position keeping close eye on 10,000, as it might act as a base for this weekly expiry.


We can see a big momentum in following stocks: 


Buy: Maruti Suzuki India (Above Rs.5780)

Target: Rs 6,060

Stop loss: Rs 5,570

The stock is bullish flag pattern in daily charts and bounced from its important moving average. Further stock is witnessing resistance breakout from 5780 might lead stock to witness more upward movement. Considering the technical evidence discussed above, we recommend buying the stock above Rs 5,780 for the target of Rs 6,060, keeping a stop loss at Rs 5,570 on closing basis.


Buy: Mahindra & Mahindra Financial Services Limited (Above Rs.157)

Target: Rs 168.80

Stop loss: Rs 147

The stock is trading at its important moving average in daily charts, if somehow stock break its immediate resistance level of 156.70 then we might witness strong upside momentum. Stock has rebounded from its important support level. We recommend buying the stock above Rs 157 for the target of Rs 168.80, keeping a stop loss at Rs 147 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.