The stock of UltraTech Cement is forming hammer reversal candlestick pattern on daily charts
Market traded with mixed sentiments on Wednesday and witnessed bounce from a level of 11,200 after witnessing a gap-down start amid muted global cues. Nifty managed to close at 11,308.40, slashing 14.10 points. Media and PSU banks stocks traded with positive sentiments whereas pharma, realty and FMCG stocks closed in the red mark. Nifty bank index closed at 22,264, adding 36.80 points from the previous day’s closing.
As per weekly option data, handful of call writing on higher strikes, ranging from 11,300 to 11,500, which shows Nifty would face resistance in the sub-11,350 zone. 11,200 might act as support as maximum put OI stands here. We can witness short-covering move along with addition of fresh position only if Nifty breaches level of 11,350. Therefore, traders should try to create long position, keeping close eye on 11,200.
Buy State Bank of India (Above Rs 205):
The stock is witnessing resistance breakout from the levels of Rs 205. Further buying momentum would be witnessed if the stock moves above the mentioned level. Considering the technical evidence, we recommend buying the stock above Rs 205 for the target of Rs 218, keeping a stop loss at Rs 196 on closing basis.
The stock is forming hammer reversal candlestick pattern on daily charts. Trading above the level of 4,020 would result in upside momentum. If the stock breaks the level of 4020, it might push it into next resistance zone which is placed at 4,100. The stock is showing signs of strength on hourly charts. Breakout from the level would lead stock to witness more upward movement. We recommend buying the stock above Rs 4,020 for the target of Rs 4,170, keeping a stop loss at Rs 3,920 on closing basis.
Disclaimer: Gaurav Garg is Head of Research at CapitalVia Global Research Limited- Investment Advisor. The analyst does not hold position in any of the stocks mentioned above. Views expressed are personal.