Nifty needs to hold 11,800 for further upside
Markets traded with mixed sentiments throughout the day on Friday, November 1 and held 11,800 which will act as an important level ahead of monthly expiry. Nifty closed at 11,890.60 adding13.10 points. Media, metal and banking stocks traded with positive sentiments throughout the day and gained most among indices. Media index performed exceptionally well with 7.63 percent. Nifty bank closed at 30,330 adding 264.25 points from the previous day’s closing.
As per weekly option data, handful of Put writing on strikes ranging from 11,700 and 11,900 which shows Nifty likely to take support in this zone. But call writers were active on higher strikes of 11,900 and 12,000 which will be resistance zone ahead of weekly expiry. Traders should remain positive as market saw put OI at 11,800 which will act as major support levels for the month, but 12,000 will act as stiff resistance as maximum OI for the calls stands here. However, if somehow nifty breaches level of 12,000, it will lead to short covering move upto 12,200 levels making all time high for the index. Therefore, traders should keep a positive bias and should buy every dip keeping close eye on 11,775.
We can see a big momentum in following stocks:
Buy Coal India above Rs 212
Target: Rs 228
Stop loss: Rs199
The stock is witnessing resistance breakout from the levels of210further stock is giving crossover on MACD on daily charts and gave closing above the resistance level and breaching this level will result in good upside momentum. Considering the technical evidence discussed above, we recommend buying the stock above212for the target of Rs 228, keeping a stop loss at Rs 199 on closing basis.
Buy DCB Bank above Rs 186.20
Stop loss: Rs176
After consolidating in a narrow range stock has given breakout from rounding bottom from level and further strength from the levels of 186.20 will lead to a bullish movement. We recommend buying the stock at 186.20 for the target of Rs. 198.50, keeping a stop loss at Rs 176 on closing basis.
Disclaimer: The analyst does not hold position in any of the stocks mentioned above.