Market trade lower ahead of monthly expiry, Nifty likely to hold 11,600
Market traded with weakness throughout the day amid subdued global cues. Nifty closed at its immediate support of 11,700. The index managed to close at 11,729.60, slashing 159.80 points. Banking, realty, and pharma sector traded with negative sentiments as none of the sectors closed with green mark. Nifty bank closed at 24,232.50, slashing 537 points from the previous day's closing.
As per weekly option data, huge call writing is witnessed on higher strikes ranging from 11,700 to 12,000 which shows Nifty is going to face resistance at 11800.The level of 11,500 will act as support as maximum put OI is placed here for monthly expiry. We can witness short-covering move along with addition of fresh position only if Nifty breaches level of 11,800. Therefore, traders should try to create long position keeping close eye on 11,600.
We can see a big momentum in following stocks:
Buy Eicher Motors Limited (Above Rs2147)
Target: Rs 2,232
Stop loss: Rs 2,078
The stock is witnessing reversal pattern on daily charts. Further buying momentum would be witnessed if the stock moves above 2,147. Breakout from the level of 2,147, which is immediate resistance, might lead the stock higher. The stock is sustaining above important averages. Considering the technical evidence discussed above, we recommend buying the stock above Rs 2,147 for the target of Rs 2,232, keeping a stop loss at Rs 2078 on closing basis.
Buy Atul Limited (Above Rs 6,160)
Target: Rs 6,335
Stop loss: Rs 6,045
The stock is witnessing a breakout from its bullish flag pattern. Further buying momentum would be witnessed if it moves above 6,160. Breakout from this level, which is immediate resistance ,might lead stock higher. We recommend buying the stock above Rs 6,160 for the target of Rs 6,335, keeping a stop loss at Rs 6,045 on 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.