Nifty might witness support in subzone of 10,000
Nifty managed to hold 10,040; Markets ready to react to Federal Reserve meeting outcome
Market bounced sharply from intra-day low zone of 10,000 and 10,050 on mix global cues. Nifty managed to close above 10,000 ahead of weekly expiry and is likely to expire above this important level. Nifty managed to close at 10,116.20 adding 69.50 points. PSU banks, reality and private banks closed with positive note, but auto and metal stocks closed in the red mark. Nifty bank closed at 21,100.10, adding 375.20 points from the Tuesday’s closing.
As per weekly option data, handful of put writing on higher strikes ranging from 10,000 to 10,100 is seen which shows Nifty might witness support in subzone of 10,000, which also might act as support as maximum put OI is placed here. But Nifty is likely to face stiff resistance at 10,300 as maximum call OI is placed here after 10,500 strike. We might witness weakness only if Nifty breaks level of 10,000. Therefore, traders should try to create long position keeping close eye on 10,000, as it might act as a base for this weekly expiry.
We can see a big momentum in following stocks:
Target: Rs 55
The stock is showing a bullish flag pattern in daily charts and has bounced from its important moving average. Further, it is witnessing resistance breakout from the levels of 50.40 which might lead the stock to witness more upward movement. Considering the technical evidence discussed above, we recommend buying the stock above Rs 50.50 for the target of Rs 55, keeping a stop loss at Rs 47 on closing basis.
The stock is trading at its important moving average in daily charts. If it somehow breaks its immediate resistance level of 1,738 then we might witness strong upside momentum. The counter is sustaining at its resistance level of 1735. We recommend buying the stock above Rs 1,740 for the target of Rs 1,870, keeping a stop loss at Rs 1,640 on closing basis.