We can witness short-covering move along with addition of fresh position only if Nifty breaches 12,000
Market trade with volatility on Wednesday, Nifty likely to hold 11,800
Market traded with huge volatility ahead of weekly expiry on subdued global cues. Nifty closed above 11,900, which is also the immediate support to look for. Nifty managed to close at 11,937.70, adding 40.90 points. Banking, metal,and realty sector traded with positive sentiments whereas technology and FMCG sector closed in the red. Nifty bank closed at 24,635, adding 323.20 points from the previous day's closing.
As per weekly option data, handful of put writing on lower strikes ranging from 11,600 to 11,800 is witnessed which shows Nifty would face firm support in the sub11,800 zone.11,800 will act as support as maximum put 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.
We can see a big momentum in following stocks:
The stock is witnessing a breakout from its bullish flag pattern. Further buying momentum would be witnessed if the stock moves above 384. Breakout from the level of 384, which is immediate resistance, can lead the stock to higher levels. Considering the technical evidence discussed above, we recommend buying the stock above Rs 384 for the target of Rs 406, keeping a stop loss at Rs 369 on closing basis.
The stock is bouncing from its support placed in 800 sub-zone, Further, buying momentum would be witnessed if it moves above 835. Breakout from the level of 835, which is immediate resistance, can lead the stock to higher levels. We recommend buying the stock above Rs 835 for the target of Rs 892, keeping a stop loss at Rs 795 on closing basis.
Disclaimer: Gaurav Garg is Head of Research at CapitalVia Global Research Limited- Investment Advisor. The analyst does not hold position in any of the stocks mentioned above. Views expressed are personal.