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 gained one percent on Friday; Nifty may touch all-time high in coming week

Market traded with positive sentiments on Friday as the government decided to infuse capital in public sector banks along with positive Asian markets. The Nifty index closed at 12,245.80, adding 119.30 points. PSU banks, realty, and private banks traded with positive sentiments throughout the day and gained the most among indices. Nifty bank closed at 32,412.35, adding 414.65 points from the previous day’s closing.
 

As per weekly option data, handful of Put writing was seen on lower strikes ranging from 12,100 to 12,200 which shows the Nifty is witnessing good support in the sub-12,200 zones. Call writing on higher strikes ranging in 12,300 to 12,400 shows the market is likely to face resistance at higher levels. Traders should try to buy any dip at higher levels as the market has maximum put Open Interest (OI) at 12,200 which will act as major support level for the weekly expiry, but 12,300 will act as resistance as maximum OI for the calls stand here. However, if somehow the Nifty breaches the level of 12,300, it will lead to short covering move up to 12,400. Therefore, traders should buy at every dip keeping close eye on 12,200.
 

We can see a big momentum in following stocks: 

Buy Jubilant Foodworks Limited: Above Rs 1,630 

Target: Rs 1,730

Stop loss: Rs 1,562

The stock is sustaining on major moving averages in daily chart and forming the flag pattern. The stock is trading above all major EMAs. Moreover, it is witnessing resistance breakout from the level of 1,630 and breaching this level will result in good upside momentum.
 

Considering the technical evidence discussed above, we recommend buying the stock above Rs 1,630 for the target of Rs 1730, keeping a stop loss at Rs 1630 on a closing basis.
 

Buy Marico Limited: Above Rs 343

Target: Rs 360

Stop loss: Rs 330

After consolidating in a narrow range, the stock is consolidating and ready to witness resistance breakout from level of Rs 342.60. The stock is showing bottoming-out pattern from lower levels and a further movement from the levels of Rs 343 will lead to a bullish movement.
 

We recommend buying the stock at 343 for the target of Rs 330, keeping a stop loss at Rs 360 on a closing basis.

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