Market traded higher on firm global cues; 15,000 is make or break level to watch for
Market traded with bullish sentiments on firm global cues and managed to close with more than 1.20 per cent gains after benchmark indices closed higher amid bullish global cues on Thursday. Nifty closed 14,867.40 with a gain of 176.70-points. Metal, PSU banksand media stocks traded with positive sentiments whereas none of the stocks closed with a red mark. The Nifty Bank index closed at 33,858 adding 554.10 points from the previous day’s closing.
As per monthly option data, significant put writing on lower strikes ranging from 14,600 to 14,800 is witnessed which shows Nifty might take support in the zone of 14,800 as maximum put OI is placed here after 14,500. We can witness profit booking only if Nifty breaks level of 14,800. Therefore, traders should try to create long position keeping close eye on 14,800.
We can see a big momentum in following stocks:
Buy Biocon Limited (Above Rs 413.50)
Target: Rs 429
Stop loss: Rs 404
The stock has given breakout from its key resistance, which was placed at 406. Moreover, it has closed above it for two consecutive days. If somehow it breaks the level of 413.50, then we can expect bullish movement in Biocon. We recommend buying the stock above 413.50 for the target of Rs 429, keeping a stop loss at Rs 404 on closing basis.
Buy Torrent Pharma limited (Above Rs 2,557)
Target: Rs 2,620
Stop loss: Rs 2,519
The stock has formed a bullish flag pattern on the daily chart. The breakout from the level of 2,557 might show good momentum. Further, it is also sustaining above its important moving averages. The stock is in a strong up-trend in a volatile market too. We recommend buying the stock above 2,557 for the target of Rs 2,620, keeping a stop loss at Rs 2,519 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.