Web Exclusive
Nifty outlook and stock picks by Gaurav Garg of CapitalVia Global Research

Nifty might witness support in subzone of 10,500 might act as support as well as maximum put OI is placed here
Nifty trades higher, closes above 10,500 on Friday; needs to hold 10,500 for further upside

Market traded with positive note on mixed Asian markets cues on Friday. The index traded in range as US market were closed on Friday. However, Nifty settled above 10,500 which might act as key support for this week. Nifty managed to close at 10,607.40 adding 55.70 points. Technology, Realty and automobile stocks closed with positive note, whereas PSU banks and metal stocks closed in red mark. Nifty bank closed at 21,852.40 slashing 100.80 points from the previous day’s closing.

 
As per weekly option data, handful of put writing on lower strikes ranging from 10,400 to 10,600 is seen which shows Nifty might witness support in subzone of 10,500. The level might also act as support as maximum put OI is placed here after 10,000. But Nifty likely to take resistance at 10,600 as maximum call OI stands here after 11,000. We might witness weakness only if Nifty breaks level of 10,500. Therefore, traders should try to create long position keeping close eye on 10,500, as it might act as crucial support for weekly expiry.

 
We can see a big momentum in following stocks: 

Buy: InterGlobe Aviation Limited (Above Rs 1,020)

 
Target: Rs 1,075

 
Stop loss: Rs 982

 
The stock took support from its important moving average and is taking firm support from its key support lying in the sub-zone of 1000. Further stock might be witnessing resistance breakout from level of Rs 1,020 which might lead stock to witness more upward movement. We recommend buying the stock above Rs 1,020 for the target of Rs 1,075, keeping a stop loss at Rs 980 on closing basis.

============================================

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



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel