Nifty continue to mount on strong global sentiments; Nifty witnessed highest weekly closing in 15 weeks

Market traded with positive sentiments on Friday, advancing on firm global cues and short covering move. Nifty closed above 10,000 on weekly basis, which shows confidence in bulls for the next week due to monthly expiry for June series. Nifty managed to close at 10,244.40 adding 152.70 points. Reality, PSU banks and Media stocks closed with positive note, but technology and metal stocks closed in red mark. Nifty bank closed at 21,338.10 adding 381.80 points from the previous day’s closing.

As per monthly option data, a handful of put writing on higher strikes ranging from 9,900 to 10,200 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 after 9,500. But Nifty likely to face stiff resistance at 10,500 as maximum call OI is placed here. 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 support for this monthly expiry.

We can see a big momentum in following stocks:

Buy: RBL Bank Limited (Above Rs.172.50)

Target: Rs 192

Stop loss: Rs 160

The stock has taken support at its key moving average and has formed a bullish flag pattern. More thrust might be witnessed if stock somehow breaks the level of 172. Further, the stock is witnessing resistance breakout which might lead to more upward movement. Considering the technical evidence discussed above, we recommend buying the stock above Rs 172.50 for the target of Rs 192, keeping a stop loss at Rs 160 on closing basis.

Buy: Oil & Natural Gas Corporation Limited (Above Rs.86.50)

Target: Rs 94

Stop loss: Rs 81.50

The stock has taken support from its important moving average in daily charts. Further, it is witnessing resistance breakout from 86.50 might lead stock to more upward movement. We recommend buying the stock above Rs 86.50 for the target of Rs 94, keeping a stop loss at Rs 81.50 on closing basis.

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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. Views expressed are personal.