Last week, the markets
traded in close range amid strong global cues. The Nifty index managed to close at 11,930.40, adding 33.90 points. Auto, media and technology stocks traded with positive sentiments whereas realty and pharma sector closed in red mark. Nifty bank closed at 24,478.30, slashing 5.85 points from the previous day’s closing. Nifty, as such, closed above 11,800 on weekly level and it might act as immediate support for the index.
As per weekly option data, handful of put writing on lower strikes ranging from 11,700 to 11,900 is witnessed which shows Nifty would face firm support in the sub 11,800 zone. The level of 11,800 will act as support as maximum put open interest (OI) is placed here. We can witness short-covering move along with addition of fresh position only if Nifty breaches 12,000. Therefore, traders should try to create long position keeping close eye on 11,800.
Buy Adani Ports and Special Economic Zone Limited (Above Rs 370)
The stock is witnessing a resistance breakout on weekly charts. Further buying momentum would be witnessed if the stock moves above 370. Breakout from the level of 283, which is the immediate resistance, might lead the stock higher. Stock is sustaining above important averages. Considering the technical evidence discussed, we recommend buying the stock above 370 for the target of Rs 412, keeping a stop loss at Rs 343 on a closing basis.
Buy ABB Limited (Above Rs 925)
The stock is witnessing a resistance breakout on daily charts. Further buying momentum would be witnessed if the stock moves above 925. Breakout from the level of 925 which is immediate resistance might lead the stock higher. Stock is sustaining above important averages. We recommend buying the stock above 925 for the target of Rs 962, keeping a stop loss at Rs 898 on a closing basis.