11,300 key level for Nifty ahead of F&O expiry: CapitalVia Global Research

Nifty outlook
 

Market traded with mixed sentiments on Wednesday and witnessed profit booking from 11,300 levels. Nifty closed above 11,200 which will act as immediate support for July monthly expiry. Nifty managed to close at 11,202.90, slashing 97.60 points. Pharma and public sector bank (PSB) stocks traded with positive sentiment whereas auto, technology stocks closed in the red. Nifty bank closed at 22,076.60, slashing 28.60 points from the previous day’s closing.
 

As per weekly option data, handful of call writing on higher strikes ranging from 11,250 to 11,400 is seen which shows that Nifty would face resistance in the sub 11,300 zone. The level of 11,000 might act as support as maximum put open interest (OI) is placed here. We can witness short-covering move along with addition of fresh position only if Nifty breaches 11,300. Therefore, traders should try to create short position keeping close eye on 11,300.
 

We can see a big momentum in the following stock: 

Buy IPCA Laboratories Limited (Above Rs 1,788):

Target: Rs 1,842

Stop loss: Rs 1,755

The stock is trading at its resistance placed in zone of 1,780 and forming bullish flag pattern on daily chart. If, somehow, the stock breaks the level of 1,788, it might push the stock into the next resistance zone which is placed at 1,844. The stock is showing signs of strength on hourly charts. Breakout from the level of would lead it to witness more upward movement. We, thus, recommend buying the stock above 1,788 for the target of Rs 1,842, keeping a stop loss at Rs 1,755 on a 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. Views expressed are personal.