Indices traded high as PM Modi announces stimulus package; Nifty closed below 9,500
Markets opened gap-up and traded with positive sentiment through-out day on Wednesday led by banking along with financial stocks. Nifty managed to close at 9,383.55 adding 187 points. PSU banks along with realty stocks traded with positive sentiments whereas Pharma and FMCG sector closed in red mark. Nifty bank closed at 19,635 adding 772.20 points from the previous day’s closing.
As per weekly option data, handful of put writing on lower strikes ranging from 9,200 to 9,400 is seen which shows Nifty would witness firm support in sub 9,200 zone. 9,000 will act as support as maximum put OI is placed here. But Nifty likely to face stiff resistance at 9,500 as maximum call OI is placed here. We can witness strength only if Nifty breaks level of 9,500. Therefore, traders should try to create long position keeping close eye on 9,200.
We can see a big momentum in following stocks:
BUY: UltraTech Cement (Above Rs 3600)
Target: Rs 3850
Stop loss: Rs 3450
Stock is witnessing reversal patter in daily charts. Further stock is taking support from the zone from 3300. Breakout from its resistance levels of 3600 would lead stock to witness more upward movement. Considering the technical evidence discussed above, we recommend buying the stock above 3600 for the target of 3850, keeping a stop loss at 3450 on closing basis.
Buy: Gujarat State Fertilizers & Chemicals (Above Rs42.80)
Target: Rs 47.00
Stop loss: Rs 40.00
Stock is witnessing reversal pattern in daily charts. Further stock is taking support from the zone from 40. Breakout from its resistance levels of 42.80 would lead stock to witness more upward movement. We recommend buying the stock above 42.80 for the target of 47, keeping a stop loss at 40 on closing basis.
Disclaimer: The analyst does not hold position in any of the stocks mentioned above.