Market traded in a range on Friday; Nifty facing 12,170 as an immediate resistance
The market traded in a close range on Friday, as traders turned cautious ahead of weekend on uncertainty over Coronavirus. Nifty closed at 12,098.40, slashing 39.60 points. Media, pharma, and metal stocks traded with positive sentiments throughout the day whereas realty and auto stocks witnessed pressure. Nifty bank closed at 31,202 slashing 102.05 points from the previous day’s closing.
As per weekly option data, handful of call writing on higher strikes ranging from 12,100 to 12,300 is seen which shows Nifty is witnessing stiff resistance in sub-12,150 zones. But traders should try to buy at any dip as the market has maximum put Open Interest (OI) at 12,000, which will act as major support level for the weekly expiry. And 12,200 will act as resistance as maximum OI for the calls stands here. However, if Nifty is able to breach 12,180, it can lead to short covering move up to 12.270. Therefore, traders should try to buy at any dip keeping close eye on 12,000.
We can see a big momentum in following stocks:
Buy: ACC Limited (Above Rs 1,515)
Target: Rs 1,563
Stop loss: Rs 1,480
The stock is sustaining on major moving averages on the daily charts and consolidating at major moving averages., Breakout from this level can result into good upside. Moreover, the stock is witnessing resistance breakout from the level of Rs 1,515 and breaching this level could result in good upside momentum.
Considering the technical evidence discussed above, we recommend buying the stock above Rs 1,515 for the target of Rs 1,563, keeping a stop loss at Rs 1,480 on a closing basis.
Buy: JK Cement Limited (Above Rs 1,431)
Target: Rs 1,489
Stop loss: Rs 1,380
After trading in a narrow range, the stock is consolidating and is ready to witness resistance breakout from the level of 1,430. Any further move from the levels of 1,431 will lead to a bullish movement. We recommend buying the stock above Rs 1,431 for the target of Rs 1,489, keeping a stop loss at Rs 1,380 on a closing basis.
Disclaimer: The analyst does not hold position in any of the stocks mentioned above.