Traders should try to book profits at higher levels, as market has maximum call OI at 12,000 which will act as major resistance levels for the weekly expiry, but 11,900 will act as support as maximum OI for the puts stands here.
However, if somehow, Nifty manages to breach the level of 11,900, it will lead to sell-off which opens risk of correction up to 11,750. Therefore, traders should be cautious and should sell on higher levels and on every spike keeping close eye on 12,000. But, if somehow Nifty manages to breakout above 12,000, we can expect fast short covering.
Buy HDFC Ltd.: (Above Rs 2,242)
The stock is witnessing flag breakout from the levels in daily chart. Moreover, it is witnessing resistance breakout from the level of 2,242 and breaching this level will result in good upside momentum. Considering the technical evidence discussed above, we recommend buying the stock above Rs 2,242 for the target of Rs 2,312, keeping a stop loss at Rs 2,198 on closing basis.
After consolidating in a narrow range, the stock is ready to witness resistance breakout from level of 91.20 and further from the levels of 91.50 will lead to a bullish movement. We recommend buying the stock at 91.50 for the target of Rs 98.20, keeping a stop loss at Rs 87.80 on closing basis.