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Nifty outlook and top trading ideas by CapitalVia Global Research

Technical Calls by Gaurav Garg, Head of Research at CapitalVia Global Research Limited- Investment Advisor

Gaurav Garg  |  Mumbai 

Equity fund managers buy Infosys, sell Reliance Industries in October

Market recovered from lows on Wednesday ahead of US-China trade phase-1 deal talk; Nifty managed to hold 12,300

Market traded with negative sentiments throughout the day on Wednesday ahead of the US-China trade talk. However, the Nifty recovered smartly from lower levels at the fag end of the session and closed at day's high. The index closed with marginal loss at 12,343.30, shedding 19 points. Realty, Automobiles along with media stocks traded with positive sentiments through the day whereas, private banks witnessed pressure in the Wednesday session. Nifty bank closed at 31,824.90, cracking 246.80 points from the previous day’s closing.

As per weekly option data, handful of call writing on higher strikes ranging from 12,350 to 12,500 is seen which indicates that Nifty is witnessing stiff resistance in the sub-12,400 zones. Market is likely to trade in the range of 12,250 to 12,400 until 12,400 level is breached as it holds highest call OI. Traders should try to buy at any dip by keeping close eye on 12,300 as it holds highest put OI for the weekly expiry. However, if Nifty is able to breach 12380, it will lead to short covering move up to 12,460. Therefore, traders should try to buy dip keeping close eye on 12,300.

We can see a big momentum in following stocks:

Buy: (Above Rs 752.20)

Target: Rs 777

Stop loss: Rs 730

The stock is sustaining on major moving averages in daily chart and has given a reversal from important moving averages. It is trading above all major Exponential Moving Averages (EMAs) and a close above this level could result in a good upside momentum.

Considering the technical evidence discussed above, we recommend buying the stock above Rs 752.20 for the target of Rs 777, keeping a stop loss at Rs 730 on a closing basis.

Buy: Sun Pharmaceutical Industries Limited (Above Rs 451)

Target: Rs 480

Stop loss: Rs 435

The stock is trading at major support level in daily charts. It is forming a bullish flag pattern and trading in very narrow range. It is also above the important averages. Breaking resistance from the levels of 451 can lead to a bullish movement. We recommend buying the stock at Rs 451 for the target of Rs 480, keeping a stop loss at Rs 435 on a closing basis.

Disclaimer: The analyst does not hold position in any of the stocks mentioned above.

First Published: Thu, January 16 2020. 08:08 IST