Nifty outlook & trading ideas by Gaurav Garg of CapitalVia Global Research

Markets traded with negative sentiments through-out the day on Thursday on weaker global cues as Nifty slipped below 15,100, dragged by metals and weakness in financial services stocks. The Nifty managed to close at 14,906, slashing 124 points, PSU Banks and Realty sector traded with positive sentiments whereas metals, private banks and automobiles closed in the red mark with marginal loss. Nifty bank closed at 33,334, slashing 351 points from the previous day’s closing.
 

As per weekly option data, handful of call writing on higher strikes, ranging from 15,100 to 15,300, happened which shows Nifty would face stiff resistance in the sub15,200 zone.15,000 will act as support as maximum put OI is placed here. We can witness short-covering move along with addition of fresh position only if Nifty breaches 15,200. Therefore, traders should try to create short position keeping close eye on 15,200.

We can see a big momentum in following stocks:
 

Buy PNB Housing Finance Limited (Above Rs 400) 

Target: Rs 428
 

Stop loss: Rs 381
The stock is forming a bullish flag pattern on daily charts. Further buying momentum would be witnessed only if the stock moves above 400. Breakout from the level of 400, which is the immediate resistance, might lead it higher. It might also bounce from important average. Considering the technical evidence discussed above, we recommend buying the stock above 400 for the target of Rs 428, keeping a stop loss at Rs 381 on closing basis.

Buy Dabur Limited (Above Rs 540) 

Target: Rs 565

Stop loss: Rs 524
The stock is forming a reversal pattern on daily charts. Breakout from the level of 540 would lead the stock towards more upward trajectory. It might outperform its peers as risk to reward is favorable at this juncture of time. We recommend buying the stock above 540 for the target of Rs 565, keeping a stop loss at Rs524 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.