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.