Market traded with volatility but managed to recover from intra-day lows of 14,040.10 on Wednesday after the Nifty50 index witnessed sharp correction early on. Nifty closed at 14,146.30, slashing 53.20 points. However, market breadth seems to be in favor of the bulls. Metal, realty & financial services stocks traded with positive sentiments whereas IT, FMCG and pharmaceutical stocks closed with red mark. Nifty bank closed at 31,797.90 adding 75.60 points from the previous day's closing.
As per weekly option data, significant call writing on higher strikes ranging from 14,200 to 14,300 is witnessed which shows Nifty might take resistance in the zone of 14,200 as maximum put OI placed here. We can witness profit booking only if Nifty breaks level of 14,000. Therefore, traders should try to create long position keeping close eye on 14,000.
We can see a big momentum in following stocks:
Buy Ajanta Pharma Limited (Above Rs 1,710)
Target: Rs 1,755
Stop loss: Rs 1,685
The stock has formed bullish candle on daily chart. A breakout from the level of 1,710 might push stock to its swing high which is placed at 1,760. It has been consolidating in a narrow range in last few weeks, breaking this range might push it in higher range. The stock is trading above its important moving averages. We recommend buying the stock above 1,710 for the target of Rs 1,755, keeping a stop loss at Rs 1,685 on closing basis.
Buy The Ramco Cements Limited (Above Rs 807)
Target: Rs 838
Stop loss: Rs 786
The stock is showing signs of reversal from its important support placed at 785. It might show further strength if it moves above 807. The stock is also sustaining above its important moving averages. We recommend buying the stock above 807 for the target of Rs 838, keeping a stop loss at Rs 786 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.