Market traded higher on Wednesday; Nifty regained 12,000 mark
Market traded higher on Thursday due to strong global cues along with soft crude prices and stable rupee. The Nifty closed at 12,089.20, gaining 109.50 points. Metal, realty and financial services stocks traded with positive sentiments through the day whereas media stocks witnessed some pressure. Nifty bank closed at 31,002, adding 315.30 points from the previous day’s closing. Today, markets will react to the RBI’s policy rate decision.
As per the weekly option data, huge put writing on lower strikes ranging from 12,000 to 12,100 is seen which shows the Nifty is witnessing good support in sub-12,000 zones. Traders should try to buy at any dip as market has maximum put Open Interest (OI) at 12,000 which will act as major support level ahead of weekly expiry, but 12,100 will act as resistance as maximum OI for the calls stands here. However, if the Nifty is able to breach 12,100, it can lead to short covering move up to 12,200. Therefore, traders should try to buy at any dip keeping close eye on 12,100.
We can see a big momentum in following stocks:
Buy: Colgate Palmolive (India) Limited (Above Rs 1380)
Target: Rs 1,435
Stop loss: Rs 1,345
The stock is sustaining on major moving averages in daily charts and consolidating at major moving averages. Moreover, it is witnessing resistance breakout from the level of Rs 1,380 and breaching this level can result in good upside momentum.
Considering the technical evidence discussed above, we recommend buying the stock above Rs 1,380 for the target of Rs 1,435, keeping a stop loss at Rs 1,345 on a closing basis.
Buy: United Breweries Limited (Above Rs 1,323)
Target: Rs 1,365
Stop loss: Rs 1,290
After trading in a narrow range, the stock is consolidating and is ready to witness resistance breakout from the level of Rs 1,323. Any movement above 1,323 can lead to a bullish move. We recommend buying the stock above Rs 1,323 for the target of Rs 1,365, keeping a stop loss at Rs 1,290 on a closing basis.
Disclaimer: The analyst does not hold position in any of the stocks mentioned above.