Sit tight with strict stop losses: Nifty may take a correction of up to 11,300
The immediate support zone of Nifty will remain in the range 11,450 and 11,500. For the next bull run, we are expecting that the market may take a correction up to 11,300 level so it will be wiser to sit tight with stop losses in your leveraged buy positions.
The volatility index INDIAVIX closed at 16.11 and Nifty closed at 11,512.40 with a low of 11,499.75 in the Friday's (September 27) trading sessions. Banknifty closed with a long legged doji in weekly chart and in daily with a -0.42 per cent negative node. From option data maximum put open interest is at 11,000 followed by 11,500 strike whereas maximum call open interest is at 11,500 followed by 11,200 level. In coming week, the market may give a range bound movement within a wide-range of 11,200-11,500.
Buy Torrent Power above Rs 295
Target: Rs 320
Stop loss: Rs 284
The stock is showing resistance breakout from the levels of 295 and meanwhile the stock is trading above its 50-day EMA and a breakout will result in good upside momentum. Considering this, we recommend buying the stock above Rs 295 for the target of Rs 320, keeping a stop loss at Rs 284 on closing basis.
Buy Adani Green Energy above Rs 60.50
Target: Rs 75
Stop loss: Rs 51
The stock is showing resistance breakout from the levels of 250 and meanwhile the stock is trading above its 50-day EMA and a breakout will result in good upside momentum. Considering the technical evidence discussed above, we recommend buying the stock above Rs 60.50 for the target of Rs 75, keeping a stop loss at Rs 51 on closing basis.
Disclaimer: The analyst does not hold position in any of the stocks mentioned above.