As per weekly option data, handful of Put writing on lower strikes ranging from 11,800 to 12,000 shows Nifty is likely to take support in the zone of 11,900 ahead of expiry. Call unwinding on lower strikes ranging of 11,800 to 12,000 shows market’s trading range has been shifted higher.
Trader should remain with positive bias as maximum put OI stands at 11,900 which will act as major support level for the week but 12,000 will act as stiff resistance as maximum OI for the calls stands here. However, if Nifty is able to breach level of 12,000, it will lead to short covering move up to 12,200 levels making all time high for the index. Therefore, traders should keep a positive bias and should buy on every dip keeping close eye on 11,880.
The stock is witnessing resistance breakout from the levels of 615. Further, it is giving MACD crossover on daily charts and has closed above the resistance level. Breaching this level will result in good upside momentum. Considering the technical evidence discussed above, we recommend buying the stock above Rs 618 for the target of Rs 658, keeping a stop loss at Rs 585 on closing basis.
Buy Equitas Holdings Ltd: (above Rs 100.30)
After consolidating in a narrow range, the stock has given a breakout from lower level and further strength from the levels of 100 will lead to a bullish movement. We recommend buying the stock at Rs 100.30 for the target of Rs 112, keeping a stop loss at Rs 95 on closing basis.