Market traded in a close range on Friday, November 27, as US market were closed due to Black Friday. However, on the domestic front, better-than-expected Q2 GDP data numbers might help index to move in the positive territory. Nifty closed at 12,968, losing18 points on Friday. Realty, auto & media stocks settled with positive sentiments whereas technology stocks closed with a red mark. Nifty bank closed at 29,609.05, adding 59.30 points from the previous day's closing.
As per weekly option data, heavy put writing on lower strikes, ranging from 12,700 to 12,900, is witnessed which shows Nifty might face support in the zone of 12,800 as maximum put OI placed here for weekly expiry. We can witness short-covering move along with addition of fresh position only if Nifty breaches 13.000. Therefore, traders should try to create long position, keeping close eye on 12,800.
We can see a big momentum in following stocks:
Buy Dr. Lal Path Labs Ltd. (above Rs 2,305):
Target: Rs 2,410
Stop loss: Rs 2,228
The stock is witnessing a resistance breakout from its immediate resistance level placed at 2,305. Moreover, it has bounced from its important 9-DEMA, Further, buying momentum would be witnessed if the stock moves above 2,305. Dr Lal Path Labs is trading above its important moving averages. We recommend buying the stock above 2,305 for the target of Rs 2,410, keeping a stop loss at Rs 2,228 on closing basis.
Buy State Bank of India (above Rs 247)
Target: Rs 263
Stop loss: Rs 232.50
The stock is witnessing a breakout from its bullish flag pattern. Further buying momentum might be witnessed if stock moves above 247. Breakout from the level of 247, which is immediate resistance, might lead stock trade higher. The stock is also sustaining above its important moving averages. We recommend buying the stock above 247 for the target of Rs 247, keeping a stop loss at Rs 232.50 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.