The market traded with strong bullish sentiments on strong global cues. Nifty Bank surged close to 2 per cent, which helped the index to close at a record high. Nifty is likely to get firm support at 12,800 ahead of weekly expiry. Nifty closed at 12,938.30 adding 64.10 points. Auto, private, and PSU banks along with realty stocks traded with positive sentiments whereas pharma and FMCG stocks sector closed in the red with 1 per cent of loss. Nifty Bank closed at 29,749.80, adding 568.50 points from the previous day’s closing.
As per weekly options data, heavy put writing on lower strikes ranging from 12,600 to 12,900 is witnessed which shows Nifty might face support in the zone of 12,800 as maximum put open interest (OI) is placed here for weekly expiry. We can witness a short-covering move along with the addition of a fresh position only if Nifty breaches 13,000. Therefore, traders should try to create a long position keeping a close eye on 12,800.
We can see a big momentum in the following stocks:
Buy Berger Paints (I) Limited (Above Rs 657):
Target: Rs 708
Stop loss: Rs 635
The stock is witnessing a breakout from its resistance level. Further, buying momentum would be witnessed if stock moves above Rs 657. It is trading above its important moving averages. We recommend buying the stock above Rs 657 for the target of Rs 708, keeping a stop loss at Rs 635 on the closing basis.
Buy REC Limited (Above Rs 117):
Target: Rs 126
Stop loss: Rs 110.50
The counter is witnessing a breakout from its bullish flag pattern. Further buying momentum might be witnessed if stock moves above Rs 117. Breakout from the level of Rs 117, which is the immediate resistance, might lead stock trade higher. It is also sustaining above its important moving averages. We recommend buying the stock above Rs 117 for the target of Rs 126, keeping a stop loss at Rs 110.50 on a 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.