Nifty's major support at 9,000 for weekly expiry: Gaurav Garg of CapitalVia

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

Indices failed to move higher despite Repo Rate reduction of 40 bps; Nifty defends 9,000

Markets traded on Friday in a range and with weakness. Sell-off was witnessed in financial and banking stocks. But, the Nifty managed to somehow defend the 9,000-mark. Nifty managed to close at 9,039.25, slashing 67 points. IT, media and pharma indices closed on a positive note, but financial services and banking stocks closed in the red mark. Nifty bank closed at 17,278.20, slashing 456.20 points from the previous day’s closing.
 

As per the weekly option data, handful of call writing on higher strikes ranging from 8,800 to 9,000 is seen which shows Nifty would witness firm resistance in sub 9,100 zone. The level of 9,000 will act as support as maximum put open interest (OI) is placed here. But Nifty is likely to face stiff resistance at 9,300 as maximum call OI is placed here after 9,500.We can witness strength only if Nifty breaks level of 9,300. Therefore, traders should try to create long position keeping close eye on 9,000, as it might act as a base for weekly expiry.
 

We can see a big momentum in following stocks: 

Buy: Piramal Enterprises Limited (Above Rs 964)

Target: Rs 1,035

Stop loss: Rs 915

The stock is witnessing reversal pattern on daily charts and has bounced from its important moving average. Further, the stock is witnessing resistance breakout from 964, which might lead the stock to witness more upward movement. Considering the technical evidence discussed, we recommend buying the stock above 964 for the target of 1,035, keeping a stop loss at 915 on a closing basis.
 

Buy: Balkrishna Industries Limited (Above Rs 1,010)

Target: Rs 1,080

Stop loss: Rs 959

The stock is trading at the resistance zone on daily charts. Further, the stock is taking support at its important moving average. Breakout from its resistance levels of 1,010 would lead the stock to witness more upward movement. We recommend buying the stock above 1,010 for the target of 1,080, keeping a stop loss at 959 on a closing basis.

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