witnessed bounce back on Friday, September 13th, from lower levels after surprising IIP data along with controlled inflation data. Banking, Automobiles, reality sector witnessed buying which led Nifty to close at 11,075.90 adding 93.10 points. Bank Nifty closed at 26,460.10 gaining 280.25 points.
As per option data for this week, handful of put writing on lower strikes ranging from 10,800 to 11,000 can be seen which will act as support for the weekly expiry. We can witness resistance on higher end at 11,100 and 11,200 as highest OI stand on these strikes. We should keep a positive bias on Nifty and should keep an eye on 11,000 as it will act as major support for the index.
Buy Federal Bank above Rs 88
The stock is showing resistance breakout from the levels of Rs 88 and as the stock is making resistance breakout in daily charts, stock is trading near its 50-day EMA and a breakout will result in good upside momentum. Considering the technical evidence discussed above, we recommend buying the stock above Rs 88 for the target of Rs 93, keeping a stop loss at Rs 84.50 on closing basis.
Buy Hindustan Zinc: Rs 221
The stock is trading below all important moving averages, after consolidating in a narrow range stock has given breakdown from the support of sub 210 levels and further strength from the levels of 221 will lead to a bullish movement. We recommend buying the stock at 221 for the target of Rs 234, keeping a stop loss at Rs 210 on closing basis.
Disclaimer: The analyst does not hold position in any of the stocks mentioned above.