Weakness in Nifty only if it breaks 10k: Gaurav Garg of CapitalVia

Indices rallied for sixth consecutive day; Nifty closed above 10,000

Market traded with positive sentiments, but the Nifty witnessed sharp profit booking in the last half an hour of the session. The index managed to close above 10,000 mark which is an important psychological level. Nifty managed to close at 10,061.50, adding 82.40 points. PSU banks, financial services, and realty closed on a positive note, but IT and metal stocks closed in the red. Nifty bank closed at 20,940.70, adding 410.50 points from the previous day’s closing.
 

As per the weekly option data, handful of put writing on higher strikes ranging from 10,000 to 10,100 is seen which shows the Nifty would witness support in subzone of 10,000, which also might act as support as maximum put open interest (OI) is placed here. But the Nifty is likely to face stiff resistance at 10,200 as maximum call open interest (OI) is placed here. We might witness weakness only if Nifty breaks the level of 10,000. Therefore, traders should try to create long position keeping a close eye on 10,000, as it might act as a base for this weekly expiry.

We can see a big momentum in following stocks: 

Buy: Siemens Limited (Above Rs.1,148)

Target: Rs1,220

Stop loss: Rs 1,100

The stock is forming the bullish flag pattern on the daily charts and has bounced from its important moving average. Further, the stock is witnessing resistance breakout from 1,148 which might lead the stock to witness more upward movement.
 

Considering the technical evidence discussed, we recommend buying the stock above 1,148 for the target of 1,220, keeping a stop loss at 1,100 on a closing basis.

Buy: L&T Technology Services Limited (Above Rs.1240)

Target: Rs 1,380

Stop loss: Rs 1,180

The stock is trading at the major resistance zone on daily charts. If it somehow breaks the level of 1,238, then we might witness a strong upside momentum. The stock is sustaining important moving average. We recommend buying the stock above 1,240 for the target of 1,380, keeping a stop loss at 1,180 on a closing basis.

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Disclaimer: The analyst does not hold position in any of the stocks mentioned above.