Nifty needs to hold 11,600 for further up-move: CapitalVia Global Research

Nifty outlook

Market traded with weakness through-out Friday amidst subdued global cues. Nifty closed above its immediate support of 11,600 at 11,642.40, slashing 28.40 points. Auto, private bank, FMCG stocks traded with negative sentiments whereas media, metal and reality sector closed with green mark. Nifty bank closed at 23,900.90, slashing 191.10 points from the previous day’s closing.

As per weekly option data, huge call writing on higher strikes ranging from 11,700 to 12,000 is witnessed which shows Nifty would face resistance in the zone of 11,800. The level of 11,600 will act as an immediate support as maximum put open interest (OI) is placed here for monthly expiry. We can witness short-covering move along with addition of fresh position only if nifty breaches 11,800. Therefore, traders should try to create long position keeping close eye on 11,600. 

We can see a big momentum in following stocks: 

Buy Apollo Hospitals Enterprise Limited (Above Rs 2,148)

Target:  Rs 2,225

Stop loss:  Rs 2,076

The stock is witnessing a breakout from its bullish flag pattern. Further buying momentum would be witnessed if the stock moves above 2,148. Breakout from the level of 2,148, which is immediate resistance, might lead the stock trade higher. We recommend buying the stock above 2,148 for the target of Rs 2,225, keeping a stop loss at Rs 2,076 on a closing basis.
 

Buy Central Depository Services (India) Limited (Above Rs 489)

Target: Rs 535

Stop loss: Rs 464

The stock is witnessing a breakout from its bullish flag pattern. Further, buying momentum would be witnessed if the stock moves above 489. Breakout from the level of 489, which is immediate resistance, might lead the stock higher. The stock is also sustaining above its important moving averages. We recommend buying the stock above 489 for the target of Rs 535, keeping a stop loss at Rs 464 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.