Nifty outlook and trading ideas by CapitalVia: Buy Adani Power, Adani Ports

Technical Calls by Gaurav Garg, Head of Research at CapitalVia Global Research Limited- Investment Advisor

Image: iSTOCK
Image: iSTOCK

Markets traded volatile as Nifty managed to hold 11,200: Nifty likely to taste 11,500 soon
Markets traded with volatility on October 11, Friday, backed by the announcement of quarterly results for IT majors. Nifty is trading near its 200-day EMA which stands at 11,242 and has managed to hold this critical level. The index closed at 11,305 adding 70.50 points. IT, metal and reality stocks traded with positive sentiments throughout the day and gained the most among the indices.
Nifty bank remained flat and gave a close at 28,042.50 gaining 29.05 points positive from the previous day’s closing.
As per monthly option data, Put writing on strikes ranging from 11,000 to 11,300 which shows Nifty likely to take support in sub-11,200 zone. Call writing on higher strike shows stiff resistance on higher levels ranging from 11,400 to 11,500. Trader should remain positive bias as market is trading above 200-day and 50-day EMA stands in the zones of 11,220 and put OI at 11,000 will act as major support for the month, but 11,400 will act as stiff resistance as maximum OI for the calls stands here. However, if somehow Nifty breached level of 11,180 will led to downside movement up to 11,075 levels. Traders should keep a positive bias and should buy every dip keeping close eye on 11,180.
We can see a big momentum in following stocks: 
Buy Adani Power above Rs 63.20
Target: Rs 69.50
Stop loss: Rs 58.50
The stock is showing signals of reversal from lower zones, resistance breakout from the levels of 63 and as stock is making resistance breakout in daily charts, stock is trading at its 50-day EMA and 200-EMA and breakout will result in good upside momentum. Considering the technical evidence mentioned above, we recommend buying the stock above 63.20 for the target of Rs 69.50, keeping a stop loss at Rs 58.50 on closing basis.
Buy Adani Ports above Rs 410.50
Target: Rs 428
Stop loss: Rs 395
The stock is trading above all important moving averages, after consolidating in a narrow range stock has given breakout from the resistance from 410 levels and further strength from the levels of 410.50 will lead to a bullish movement. We recommend buying the stock at 410.50 for the target of Rs 428, keeping a stop loss at Rs 395 on closing basis.

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