Market traded higher on Friday; Nifty likely to touch all-time high soon
The Nifty traded with positive sentiments on Friday on strong global cues, as the US-China trade talk progressed in a positive direction. The index closed at 12,086.70, adding 114.90 points. PSU banks, metal and reality stocks traded with positive sentiments through the day and gained the most among the indices. Banknifty closed at 32,014.30, adding 348.80 points from the previous day’s closing.
As per weekly option data, handful of Put writing on lower strikes ranging from 12,000 to 12,100 which shows the Nifty is witnessing good support in sub-12,050 zones. Call writing on higher strikes ranging of 12,150 to 12,200 shows market likely to face resistance at higher levels. Traders should try to buy any dip as market has maximum put OI at 12,000 which will act as major support levels for the weekly expiry, but 12,200 will act as resistance as maximum OI for the calls stands here. However, if Nifty is able to breach the level of 12,200 it will lead to short covering move up to 12,400. Therefore, we recommend buying at every dip keeping a close eye on 12,000.
We can see a big momentum in following stocks:
Buy Adani Power Ltd.: Above Rs 62.25
Target: Rs 67.50
Stop loss: Rs 58.50
The stock is witnessing a bounce-back from major moving averages in daily chart. Moreover, the stock is witnessing resistance breakout from the level of 62 and breaching this level can result in a good upside momentum. Considering the technical evidence discussed above, we recommend buying the stock above Rs 62.25 for the target of Rs 67.50, keeping a stop loss at Rs 58.50 on a closing basis.
Buy Concor Ltd.: Above Rs 581
Target: Rs 630
Stop loss: Rs 545
After consolidating in a narrow range, the stock is consolidating and ready to witness resistance breakout from 580. Breaking 581 can lead to a bullish movement. We recommend buying the stock at Rs 581 for the target of Rs 630, keeping a stop loss at Rs 545 on a closing basis.
Disclaimer: The analyst does not hold position in any of the stocks mentioned above.