took announcements by FM Nirmala Sitharaman of slashing corporate tax from effective tax rate of 34.94per cent to 25.17 per cent extremely positively, which took
to breach all important moving average of 50 and 200 days in a single trading session.
Banking, Automobile, NBFC’s and FMCG companies surged most which led Nifty to close at 11,274.20, adding 569.20 points. IT was the only sector which closed in red whereas, banks witnessed most traction which led Niftybank to close at 28,981.55, adding 2,223.90 points.
As per option data for this week, massive put writing was seen on all lower strikes ranging from 10,800 to 11,300 clearly depicting that markets will trade with positive bias as they find firm support which exists at sub - 11,200 levels. We can witness resistance on higher end at 11,500 and 11,300 as highest OI stand on these strikes. We should keep a positive bias on the Nifty and should keep eye on 11,200 as it will act as major support for the Nifty.
Buy Cadila Healthcare above Rs 250
The stock is showing resistance breakout from the levels of Rs 250. Meanwhile the stock is trading above 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 250 for the target of Rs 270, keeping a stop loss at Rs 234 on closing basis.
The stock is trading above all important moving averages, after consolidating in a narrow range the stock has given breakout from the resistance of sub 351 levels and further strength from the levels of 351 will lead to a bullish movement. We recommend buying the stock at 351 for the target of Rs 375, keeping a stop loss at Rs 335 on closing basis.
Disclaimer: The analyst does not hold position in any of the stocks mentioned above.