Business Standard
Web Exclusive

Nifty needs to hold 14,500 to sustain upside: Gaurav Garg of CapitalVia

Nifty50 can witness profit booking only if it breaks level of 14,500

Topics
Nifty Outlook | Stock calls | Stock tips

Gaurav Garg  |  Mumbai 

Nifty needs to hold 14,500 to sustain upside: Gaurav Garg of CapitalVia
As per weekly option data, significant put writing on lower strikes, ranging from 14,500 to 14,600, was witnessed on January 20

The market traded higher on Wednesday as the Nifty index continued to hold its momentum for second straight session on strong global cues. The index closed at 14,644.70 adding, 123.50 points. Technology, PSU banks and media stocks traded with positive sentiments whereas FMCG sector closed with a red mark with marginal loss. Nifty Bank closed at 32,543.70, adding 118.90 points from the previous day's closing.

As per weekly option data, significant put writing on lower strikes, ranging from 14,500 to 14,600, is witnessed which shows that Nifty might take support in the zone of 14,500 as maximum put OI is placed here. We can witness profit booking only if Nifty breaks level of 14,500. Therefore, traders should try to create long position keeping close eye on 14,500.

We can see a big momentum in following stocks:

Buy The India Cements Limited (Above Rs 175)

Target: Rs 191

Stop loss: Rs 166

The stock is forming bullish flag pattern on daily charts. If it breaks its near-term resistance, placed at 175, it might lead to a strong momentum. The stock is also sustaining above its important moving averages. We recommend buying the stock above 175 for the target of Rs 191, keeping a stop loss at Rs 166 on closing basis.

Buy Shriram Transport Finance Company Limited (Above Rs 1,262)

Target: Rs 1,345

Stop loss: Rs 1,215

The stock is showing signs of reversal from its important support zone placed at 1200. It might show further strength if it moves above 1,262. The scrip is also sustaining above its important moving averages. We recommend buying the stock above 1,262 for the target of Rs 1375, keeping a stop loss at Rs 1,215 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.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, January 21 2021. 07:11 IST
RECOMMENDED FOR YOU
.