Top trading ideas by CapitalVia Global Research: Buy UPL, Equitas Holdings

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

Nifty managed to touch 12,000 led by Nifty bank, need to hold 11,900 for further upside
 

Markets bounced sharply from intraday lows of 11,850 and traded with positive sentiments throughout the day on Wednesday which will act as an important level ahead of weekly expiry today (November 7). Nifty closed at 11,966, adding 48.80 points. Realty and banking, especially private banks, traded with positive sentiments throughout the day and gained most among indices. Nifty bank closed at 30,609.60 adding 389.80 points positive from the previous day’s closing.

As per weekly option data, handful of Put writing on lower strikes ranging from 11,800 to 12,000 shows Nifty is likely to take support in the zone of 11,900 ahead of expiry. Call unwinding on lower strikes ranging of 11,800 to 12,000 shows market’s trading range has been shifted higher.
 

Trader should remain with positive bias as maximum put OI stands at 11,900 which will act as major support level for the week but 12,000 will act as stiff resistance as maximum OI for the calls stands here. However, if Nifty is able to breach level of 12,000, it will lead to short covering move up to 12,200 levels making all time high for the index. Therefore, traders should keep a positive bias and should buy on every dip keeping close eye on 11,880. 

We can see a big momentum in following stocks:

Buy UPL: (Above Rs 618)

Target:  Rs 658

Stop loss:  Rs 585

The stock is witnessing resistance breakout from the levels of 615. Further, it is giving MACD crossover on daily charts and has closed above the resistance level. Breaching this level will result in good upside momentum.  Considering the technical evidence discussed above, we recommend buying the stock above Rs 618 for the target of Rs 658, keeping a stop loss at Rs 585 on closing basis.
 

Buy Equitas Holdings Ltd: (above Rs 100.30)

Target: Rs 112

Stop loss: Rs 95

After consolidating in a narrow range, the stock has given a breakout from lower level and further strength from the levels of 100 will lead to a bullish movement. We recommend buying the stock at Rs 100.30 for the target of Rs 112, keeping a stop loss at Rs 95 on closing basis.

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