The market traded on a volatile note on Friday but managed to recover from intraday lows of 13,400, which is also the immediate support for this week. Nifty closed at 13,513.90, adding 35.60 points. Metal, FMCG and realty stocks traded with positive sentiments whereas stocks from the pharma and IT sectors closed in the red. Nifty Bank closed at 30,604.85, adding 94.55 points from the previous day’s closing.
As per weekly option data, significant put writing on lower strikes ranging from 13,200 to 13,500 is witnessed which shows Nifty might take support in the zone of 13,500 as maximum put OI is placed there for weekly expiry after 13,000 strike. We can witness profit booking only if Nifty breaks the level of 13,400. Therefore, traders should try to create a long position keeping a close eye on 13,400.
We can see a big momentum in the following stocks:
Buy Quess Corp (Above Rs 497):
Target: Rs 528
Stop loss: Rs 475
The stock is forming a falling wedge pattern on the hourly charts. Breakout might push the stock to its swing high which is placed at Rs 528. Further buying momentum would be witnessed if the stock moves above Rs 497. It is currently trading above its important moving averages. We recommend buying the stock above Rs 497 for the target of Rs 528, keeping a stop loss at Rs 475 on a closing basis.
Buy City Union Bank (Above Rs 180):
Target: Rs 193
Stop loss: Rs 171
The stock is showing signs of reversal from its important support placed at Rs 172. The stock might show further strength if it moves above Rs 180. The stock is also sustaining above its important moving averages. We recommend buying the stock above Rs 180 for the target of Rs 193, keeping a stop loss at Rs 171 on a 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.
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