Market opened with positive note and remained trending throughout the session which pushed nifty above 12,250 on January 24, and closed at 12,248.30 adding 67.90 points. Metal, Media and FMCG stocks traded with positive sentiments through the day whereas, pharma and IT stocks witnessed pressure on Friday session. Nifty bank closed at 31,241.80 adding 226.79 points from the previous day’s closing.
As per weekly option data, huge put writing on lower strikes ranging from 12,000 to 12,200 is observed which shows Nifty is witnessing strong support in the sub-12,200 zones. Market is likely to trade in range of 12,200 to 12,300 until 12,300 level is not breached, as it holds highest call OI in January monthly series. Traders should try to buy at dips keeping close eye on 12,200 level as it holds second highest put OI for the weekly expiry after 12,200 strike. However, if nifty is able to breach level of 12300, it might lead to short covering move up to 12,350.
We can see a big momentum in following stocks:
Buy: Vedanta Limited (Above Rs 157.20)
The stock is sustaining on major moving averages in daily chart and witnessing a bounce back from its important moving averages, breaching this level could result in good upside momentum. Considering the technical evidence discussed above, we recommend buying the stock above 157.20 for the target of Rs 166.20, keeping a stop loss at Rs 151.80 on closing basis.
Buy: Hindustan Unilever Limited (Above Rs 2,080)
Stock is trading above major resistance level in daily charts, stock is forming a bullish flag pattern and from the levels of 2,075 will lead to a bullish movement. We recommend buying the stock at 2,080 for the target of Rs 2,150, keeping a stop loss at Rs 2,034 on closing basis.
Disclaimer: The analyst does not hold position in any of the stocks mentioned above.