Indices traded in a close range on Friday; Nifty defends 9,200

Market traded with sideways sentiments through-out Friday but banking and financial stocks slipped in the second half. Nifty managed to close at 9,251.50, adding 52.45 points. FMCG, Pharma and technology stocks traded with positive sentiments whereas auto, PSU banks, metal sector closed in the red. Nifty bank closed at 19,352.90, slashing 138.90 points from the previous day’s closing.

As per the weekly option data, handful of put writing on lower strikes ranging from 8,800 to 9,100 is seen which shows Nifty would witness firm support in sub 9,000 zone. The level of 9,100 will act as support as maximum put open interest (OI) is placed here. But Nifty is likely to face stiff resistance at 9,400 as maximum call OI is placed here after 9,500. We can witness strength only if Nifty breaks level of 9,400. Therefore, traders should try to create long position keeping close eye on 9,000.

We can see a big momentum in following stocks:

Buy: Sun Pharmaceutical Industries Limited (Above Rs 472)

Target: Rs 512

Stop loss: Rs 450

The stock is witnessing reversal pattern on daily charts. Further, it is taking support from the zone from 450. Breakout from its resistance levels of 472 would lead stock to witness more upward movement. Considering the technical evidence discussed, we recommend buying the stock above 472 for the target of 512, keeping a stop loss at 450 on a closing basis.

Buy: Lupin Limited (Above Rs 842)

Target: Rs 880

Stop loss: Rs 810

The stock is witnessing reversal patter on daily charts. Further, the stock is taking support from the zone from 815. Breakout from its resistance levels of 842 would lead the stock to witness more upward movement. We recommend buying the stock above 842 for the target of 880, keeping a stop loss at 810 on a closing basis.

Disclaimer: The analyst does not hold position in any of the stocks mentioned above.