Market traded higher on Friday for the straight eighth session; Nifty closed at a record high
Market traded with positive sentiments on strong global cues and strong inflows from FIIs. Nifty closed at 12,271.80, adding 12.10 points. PSU banks, media and metal stocks traded with positive sentiments throughout the day and gained the most among indices. Nifty bank closed at 32,385, adding 143.50 points from the previous day’s closing.
As per weekly option data, handful of Put writing was done on lower strikes ranging from 12,200 to 12,250 which shows Nifty is witnessing good support in sub-12,200 zones. Call writing on higher strikes ranging from 12,300 to 12,500 shows market is likely to face resistance at higher levels. Traders should try to buy at any dip from higher levels as market has maximum put open interest (OI) at 12,200 which will act as major support level for the weekly expiry, but 12,300 will act as resistance as maximum OI for the calls stands here. However, if the Nifty is able to breach 12,300 will led to short covering move up to 12,400. Therefore, traders should buy at every dip keeping close eye on 12,200.
We can see a big momentum in following stocks:
Buy UPL Ltd.: (Above Rs 583)
Target: Rs 620
Stop loss: Rs 560
The stock is witnessing a bounce-back from major moving averages in daily chart and has closed above all major EMAs. Moreover, the stock is witnessing resistance breakout from the level of 583 and breaching this level might result in good upside momentum. Considering the technical evidence discussed here, we recommend buying the stock above Rs 583 for the target of Rs 620, keeping a stop loss at Rs 560 on a closing basis.
Buy Britannia Industries Ltd.: (Above Rs 3,157)
Target: Rs 3,280
Stop loss: Rs 3,060
After consolidating in a narrow range, the stock is consolidating and is ready to witness resistance breakout from level of Rs 3,150 and further from the levels of Rs 3,157 might lead to a bullish movement. We recommend buying the stock at Rs 3,157 for the target of Rs 3,280, keeping a stop loss at Rs 3,060 on a closing basis.
Disclaimer: The analyst does not hold position in any of the stocks mentioned above.