Market trade higher ahead of weekly expiry, Nifty likely to face resistance at 12,000
Market traded with strength through-out the day amidst mixed global cues after SC adjourned hearing on moratorium case. Nifty defended its key support placed at 11,800 and managed to close at 11,971 adding 36.50 points. Banking and reality sector traded with positive sentiments whereas technology, pharma and auto sector closed in the red mark with marginal loss. Nifty bank closed at 23,874.70, adding 382.50 points from the previous day's closing.
As per weekly option data, handful of put writing on lower strikes ranging from 11,700 to 11,900 is witnessed which shows Nifty would face firm support in sub-11,800 zone.11,800 will act as support as maximum put OI is placed here. We can witness short-covering move along with addition of fresh position only if nifty breaches 12,000. Therefore, traders should try to create long position keeping close eye on 11,800.
We can see a big momentum in following stocks:
Buy Jubilant Food works Limited (Above Rs 2,326)
Target: Rs 2,415
Stop loss: Rs 2,260
The stock is forming a reversal pattern on daily charts. Breakout from the level of 2,326 would lead stock to witness more upward movement. It is also witnessing bounce from the important 40-DEMA. We recommend buying the stock above Rs 2,326 for the target of Rs 2,415, keeping a stop loss at Rs 2,260 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.