Nifty, Bank Nifty outlook; Shriram Fin, Ashok Leyland among top stock picks

Nifty view today

Nifty index opened on a positive note but moved with volatile two-way swings throughout the session, largely on account of monthly expiry. Intraday moves lacked clear direction as both bulls and bears attempted to take control at different intervals. However, in the last hour, the index came under sharp selling pressure, dragging it lower and even breaching the previous session’s low. This late decline reinforced the weakness visible over the past few sessions. On the daily chart, Nifty formed a bearish candle and continues to maintain a sequence of lower highs and lower lows for the fourth straight session, indicating sustained pressure and a lack of strong follow-through buying at higher zones. Now till it holds below 26,000 zones weakness could be seen towards 25,750 then 25,600 zones while hurdles have shifted lower to 26,000 then 26,100 zones.

 

On option front, Maximum Call OI is at 26,000 then 26,500 strike while Maximum Put OI is at 26,000 then 25,500 strike. Call writing is seen at 26,000 then 26,500 strike while Put writing is seen at 26,000 then 25,500 strike. Option data suggests a broader trading range in between 25,400 to 26,300 zones while an immediate range between 25,700 to 26,100 levels.  ALSO READ | Trading guide, Nov 26: Check key Nifty levels to watch; two stocks to buy

Bank Nifty view

Bank Nifty index opened on a positive note near 58,900 zones but remained highly volatile in wider range of 400 points in between 58,750 to 59,150 zones for most part of the session. It formed a small bodied candle on daily scale with long upper and lower shadow as buying interest is visible at lower levels but momentum is missing at higher zones. Rate sensitive Index is holding above its 10 DEMA and relatively outperforming the broader market. Now it has to hold above 58,750 zones for an up move towards 59,000 then 59,350 zones while on the downside support is seen at 58,650 then 58,500 levels.  ALSO READ | Stocks to Watch today, Nov 26: Airtel, Nelco, Welspun Corp, Asian Paints

Buy Shriram Finance | CMP: ₹838 | Stop Loss: ₹810 | Target price: ₹890

Shriram Finance stock has formed a bullish “Pennant” pattern suggesting a continuation of the uptrend. It is respecting its 20 DEMA support zones. The MACD indicator is rising high confirms the up move.   

Buy Aurobindo Pharma | CMP: ₹1,208 | Stop Loss: ₹1,175 | Target: ₹1,280

Aurobindo Pharma stock is retesting its breakout zones and formed a “Bullish Engulfing” pattern suggesting an up move. It has also given a golden crossover to confirm the uptrend. The RSI indicator is rising to support the positive momentum.  

Buy Ashok Leyland | CMP: ₹145 | Stop Loss: ₹141 | Target: ₹153

Ashok Leyland stock is in an overall uptrend and is respecting its 20 DEMA support zones with slight dips being bought into. The ADX line is rising to confirm the strength of the uptrend.

 

(Disclaimer: This article is by Chandan Taparia, head derivatives & technicals, wealth management, Motilal Oswal Financial Services. Views expressed are his own.)