Markets closed on a weaker note ahead of announcement of IIP data on Thursday. Automobiles and reality sector witnessed major profit booking which led Nifty to close at 10,982.80 losing 52.90 points. But Banknifty gave a helping hand to overall market breadth which closed at 27,789.20 gaining 42.50 points.
As per option data for the next week, handful of put writing was seen on lower strikes ranging from 10,800 to 11,000 which will act as support for the weekly expiry. We can witness resistance on higher end at 11,000 and 11,200 as highest Open Interest (OI) stand on these strikes. We should keep a positive bias for Nifty and should keep an eye on 11,000 as it will act as a make or break level. 10,880 will act as major support for Nifty.
Buy HDFC Bank Ltd above Rs 2,290
Target: Rs 2,350
Stop loss: Rs 2,240
The stock is showing resistance breakout from the levels of 2,290 and as is making resistance breakout in daily charts, stock is trading near its 200-day EMA and breakout will result in good upside momentum. Considering the technical evidence discussed above, we recommend buying the stock above Rs 2,290 for the target of Rs 2,350, keeping a stop loss at Rs 2,240 on closing basis.
Buy Divi's Laboratories Ltd. at Rs 1,656.50
Target: Rs 1,725
Stop loss: Rs 1,605
The stock is trading below all important moving averages, after consolidating in a narrow range. It has given a breakdown from the support of sub 1,600 levels and further strength from the levels of 1656.50 which will lead to a bullish movement. We recommend buying the stock at Rs 1656.50 for a target of Rs 1,725, keeping a stop loss at Rs 1,605 on closing basis.
Disclaimer: The analyst does not hold position in any of the stocks mentioned above.