Market traded with volatility ahead of weekly expiry, Nifty needs to hold 11,800 for further up-move
Market traded with volatile movement ahead of the US presidential election outcome, following path of global markets. Nifty is likely to face resistance at 12,000 ahead of weekly expiry. The index closed at 11,908.50, adding 95 points. Pharma, technology and auto stocks traded with positive sentiments whereas realty and metal sector closed with red mark. Nifty bank index closed at 25,771.60, adding 88.80 points from the previous day's closing.
As per weekly option data, put writing on lower strikes ranging from 11,700 to 11,900 is witnessed which shows Nifty might face support in the zone of 11,800. The level of 11,700 might act as an immediate support as maximum put OI is placed here for weekly expiry. We can witness short-covering move along with addition of fresh position only if Nifty breaches 12,000. Therefore, traders should try to create long position keeping close eye on 11,800.
We can see a big momentum in following stocks:
Buy Larsen & Toubro Infotech Limited (Above Rs 3,070)
Target: Rs 3,248
Stop loss: Rs 2,940
The stock is witnessing a resistance breakout from its resistance level. Further buying momentum would be witnessed if it moves above 3,070. It is trading above its important moving averages. We recommend buying the stock above Rs 3,070 for the target of Rs 3,248, keeping a stop loss at Rs 2,940 on closing basis.
Buy Avenue Supermarts Limited (Above Rs 2,300)
Target: Rs 2,415
Stop loss: Rs 2,208
The stock is witnessing a breakout from its bullish flag pattern. Further buying momentum would be witnessed if it moves above 2,300. Breakout from the level of 2,300, which is immediate resistance, might lead stock trade higher. The scrip is also sustaining above its important moving averages. We recommend buying the stock above Rs 2,300 for the target of Rs 2,415, keeping a stop loss at Rs 2,208 on 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.