 "Nifty outlook & stock picks by Gaurav Garg: Buy Quess Corp, Coromandel Intl")
Nifty outlook
Market traded lower amidst profit booking on Friday as global sentiments were subdued along with spike in Covid-19 cases domestically, which pushed index lower. Nifty closed at 14,631.10, slashing 263.80 points. Banks, financial and FMCG stocks traded with negative sentiments whereas Pharma sector closed in the green. Nifty bank closed at 32,781.80, losing 932.70 points from the previous day’s closing.
As per weekly option data, significant call writing on higher strikes ranging from 14,700 to 15,000 is witnessed, which shows Nifty might take resistance in the zone of 14,800 as maximum call OI placed here after 15,000. We can witness profit booking only if Nifty breaks level of 14,500. Therefore, traders should try to create short position keeping close eye on 14,800.
As per weekly option data, significant call writing on higher strikes ranging from 14,700 to 15,000 is witnessed, which shows Nifty might take resistance in the zone of 14,800 as maximum call OI placed here after 15,000. We can witness profit booking only if Nifty breaks level of 14,500. Therefore, traders should try to create short position keeping close eye on 14,800.
We can see a big momentum in following stocks:
Buy Quess Corp Limited (Above Rs 634)
Target: Rs 680
Stop loss: Rs 605
The stock is forming bullish flag pattern on daily charts, breaking its resistance might push stock to its next resistance, placed at 634. It is consolidating at daily trendline breakout and is also sustaining above its important moving averages. We recommend buying the stock above 634 for the target of Rs 680, keeping a stop loss at Rs 605 on a closing basis.
Buy Coromandel International Limited (Above Rs 745)
Target: Rs 788
Stop loss: Rs 715
The stock is showing signs of reversal from its important support zone, placed at 745. It might show further strength if it moves above 745. The stock is also sustaining above its important moving averages. We recommend buying the stock above 745 for the target of Rs 788, keeping a stop loss at Rs 730 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.
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