Nifty outlook and stock picks by Gaurav Garg of CapitalVia Global Research

Nifty trades higher, closes above 10,500 on Friday; needs to hold 10,500 for further upside

Market traded with positive note on mixed Asian markets cues on Friday. The index traded in range as US market were closed on Friday. However, Nifty settled above 10,500 which might act as key support for this week. Nifty managed to close at 10,607.40 adding 55.70 points. Technology, Realty and automobile stocks closed with positive note, whereas PSU banks and metal stocks closed in red mark. Nifty bank closed at 21,852.40 slashing 100.80 points from the previous day’s closing.
 

As per weekly option data, handful of put writing on lower strikes ranging from 10,400 to 10,600 is seen which shows Nifty might witness support in subzone of 10,500. The level might also act as support as maximum put OI is placed here after 10,000. But Nifty likely to take resistance at 10,600 as maximum call OI stands here after 11,000. We might witness weakness only if Nifty breaks level of 10,500. Therefore, traders should try to create long position keeping close eye on 10,500, as it might act as crucial support for weekly expiry.
 

We can see a big momentum in following stocks: 

Buy: InterGlobe Aviation Limited (Above Rs 1,020)
 

Target: Rs 1,075
 

Stop loss: Rs 982
 

The stock took support from its important moving average and is taking firm support from its key support lying in the sub-zone of 1000. Further stock might be witnessing resistance breakout from level of Rs 1,020 which might lead stock to witness more upward movement. We recommend buying the stock above Rs 1,020 for the target of Rs 1,075, keeping a stop loss at Rs 980 on closing basis.

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Disclaimer: The analyst does not hold position in any of the stocks mentioned above.