The Nifty traded with volatility throughout the truncated expiry week but somehow managed to hold 11,000 after the news on relief of trade war between US and China. India Vix is currently at 17 and is showing a probability of more volatility ahead. Nifty closed at 11,029.40, adding 103.55 points on Wednesday. Nifty Bank managed to hold 28,000 levels and closed at 28,019.20 with a gain of 290.10. As per Option data, Nifty has witnessed call writing at 11,100 and 11,250 strike, which is a clear resistance zone and fresh put writing at 11,000 and 10,900, respectively, which will act as support for the next weekly expiry on August 22.
For the coming week, we can expect a big movement in automobile stocks.
Buy Hero MotoCorp above Rs 2,652
Target: Rs 2,775
Stop loss: Rs 2,550
The stock was trading with a positive bias irrespective of current market sentiments. The level above 2,652 would result in resistance breakout on the daily charts. Moving average and the Oscillator setup is bullish on the short- and medium-term charts. Considering the technical evidence discussed above, we recommend buying the stock above Rs 2,652 for the target of Rs 2,775, keeping a stop loss at Rs 2,550 on closing basis.
Buy Bajaj-Auto above Rs 2,758
Target: Rs 2,920
Stop loss: Rs 2,642
The stock has been undergoing consolidation in the recent past and has bounced sharply from its current support level. A breakout above the 2,758 level would result in a strong bullish movement. The script is trading above all important moving averages. Considering the technical evidence discussed above, we recommend buying the stock above Rs 2,758 for a target of Rs 2,920, keeping a stop loss at Rs 2,642 on closing basis.
Disclaimer: The analyst does not hold positions in any of the stocks mentioned above.