Nifty outlook and top trading ideas by CapitalVia Global Research Limited

Technical Calls by Gaurav Garg, Head of Research at CapitalVia Global Research Limited- Investment Advisor

Market witnessed profit booking at higher levels; Nifty likely to take support at 12,200

Market traded with negative sentiments on Tuesday on mixed global cues. The Nifty closed at 12214.50, shedding 48.30 points. Metal, realty, and pharma stocks traded with positive sentiments throughout the day and gained the most among indices. Nifty bank closed at 32,280.80, down 181.40 points from the previous day’s close.

As per weekly option data, handful of call writing is seen on higher strikes ranging from 12,250 to 12,300 which shows Nifty is witnessing stiff resistance in sub-12,300 zones. Call writing on higher strikes ranging from 12,300 to 12,500 shows market is likely to face resistance at higher levels. Traders should try to buy at dips from higher levels as market has maximum put OI at 12,000 which will act as major support levels for the weekly expiry, but 12,300 will act as resistance as maximum OI for the calls stands here. However, if the Nifty is able to breach 12,200,  it might lead to profit booking move up to 12,100. Therefore, traders should try to book profit on higher levels, keeping a close eye on 12,300. 

We can see a big momentum in following stocks: 

Buy: Infosys Ltd. (Above Rs 737.40)

Target:  Rs 760

Stop loss:  Rs 722

The stock is sustaining on major moving averages in daily chart and forming flag pattern. It's trading above all major EMAs, moreover, it is witnessing resistance breakout from the level of 737.40 and breaching this level might result in good upside momentum. Considering the technical evidence discussed, we recommend buying the stock above Rs 737.40 for the target of Rs 760, keeping a stop loss at Rs 722 on a closing basis.

Buy: Bharti Airtel Limited (Above Rs 461)

Target: Rs 485

Stop loss: Rs 445

After consolidating in a narrow range, the stock is ready to witness resistance breakout from the level of 460.50 and any rise further from the levels of 461 could lead to a bullish movement. We recommend buying the stock at Rs 461 for the target of Rs 485, keeping a stop loss at Rs 445 on a closing basis.

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