Market traded higher for fourth straight session;12,100 is immediate support to look for
Market traded with strong bullish sentiments after US presidential elections, as US indices rallied more 7 per cent in past week. Nifty is likely to face support at 12,100 this week. Nifty closed at 12,263.50, adding143.20 points on Friday. Private banks, financial services and realty stocks traded with positive sentiments whereas pharma and FMCG indices closed with red mark with marginal loss. Nifty bank closed at 26,798.95, adding 485.85 points from the previous day's closing.
As per weekly option data, heavy put writing on lower strikes ranging from 12,000 to 12,200 is witnessed which shows Nifty might face support in the zone of 12,100.12,000 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 12,300. Therefore, traders should try to create long position keeping close eye on 12,000.
We can see a big momentum in following stocks:
Buy Muthoot Finance Limited (Above Rs 1,267)
Target: Rs 1,343
Stop loss: Rs 1,206
The stock is witnessing a resistance breakout from its resistance level. Further buying momentum would be witnessed if it moves above 1,267. The stock is trading above its important moving averages. Thus, we recommend buying the stock above Rs 1,267 for the target of Rs 1,343, keeping a stop loss at Rs 1,206 on closing basis.
Buy DLF Limited (Above Rs 171.20)
Stop loss: Rs 164.10
The stock is witnessing a breakout from its bullish flag pattern. Further buying momentum might be witnessed if itmoves above 171.20. Breakout from the level of 171.20, 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 Rs 171.20 for the target of Rs 186.20, keeping a stop loss at Rs164.10 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.