 "Market outlook and top trading ideas by CapitalVia Global Research")
Nifty View
Markets bounced sharply from lower levels and formed piercing candle on daily charts, hinting towards the reliefs provided by Finance Minister Nirmala Sitharaman by revoking FPI surcharge, capitalization for PSBs and major announcements to boost the economy. The Nifty closed at 10,829.40 on Friday, surging 88 points, and making an intraday low of 10,638.
Niftybank was unable to contribute in the rally and closed in the red at 26,958.65, shedding 75.55 points. The Nifty will face resistance at 10,900 levels, and if it breaks this level, we may witness an upside up to 11,050.
As per option data, huge call writing at 11,000 will act as major resistance, level of 10,700 will act as support as it holds highest put OI. In the coming week, we could witness bounce back and witness range bound movement in the range of 11,000 to 10,700 with a positive bias.
TRADING IDEAS
Buy Piramal Enterprise Ltd. (above Rs 1829)
Target: Rs 1,985
Stop loss: Rs 1,700
The stock is trading in a range despite market’s volatile movement and is showing a sign of reversal from the lower levels. It is witnessing major moving MACD crossover in daily charts that would result in strong bullish movement. Considering the technical evidence discussed above, we recommend buying the stock above Rs 1,829 for the target of Rs 1,985, keeping a stop loss at Rs 1,700 on closing basis.
Buy Mahindra and Mahindra (Rs 537.00)
Target: Rs 570
Stop loss: Rs 509
The stock is forming an engulfing candle on daily chart and breakout above 537 will lead to a strong bullish movement. We recommend buying the stock at Rs 537 for the target of Rs 570, keeping a stop loss at Rs 509 on a closing basis.
Disclaimer: The analyst does not hold positions in any of the stocks mentioned above.
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