Market opened with gap-up and managed to trade higher due to strong global cues as Donald Trump ensured a big trade deal with India. Nifty closed at 12,125.90 gaining 133.40 points. All sectoral indices closed with green mark and witnessed broad based buying. Nifty bank closed at 30,838.20 adding 275.70 points to the previous day’s closing.
As per weekly option data, handful of put writing on lower strikes ranging from 12,000 to 12,200 is seen which shows Nifty is witnessing firm support in sub -12,100 zone. Traders should try to buy at any dip as market has maximum put OI at 12,100 which will act as major support level for weekly expiry. But 12,200 will act as resistance as maximum OI for the calls stands here. We can witness short-covering move along with addition of fresh position only if Nifty breaches 12,200. Therefore, traders should try to buy any dip keeping close eye on 12,100.
We can see a big momentum in following stocks:
Buy: Indraprastha Gas Limited (Above Rs 481)
The stock has bounced from major moving averages, along this stock is forming reversal candlestick pattern. Breakout from the level of 481 might lead to bullish movement. Stock may witness strong buying momentum if stock breaks 481 level.
Considering the technical evidence discussed above, we recommend buying the stock above 481 for the target of Rs 506, keeping a stop loss at Rs 461 on closing basis.
Buy: Siemens Limited (Above Rs 1425.50)
Stock is witnessing reversal from its 200 EMA, moreover stock has formed inverted hammer candlestick. Sustaining above 1425 will lead to more bullish movement.
We recommend buying the stock above 1425.50 for the target of Rs 1490, keeping a stop loss at Rs 1390 on closing basis.
Disclaimer: The analyst does not hold position in any of the stocks mentioned above.