Markets traded in a range with weakness and witnessed sell-off in financial and banking stocks. But Nifty managed to somehow defend 9000 mark. Nifty managed to close at 9039.25 slashing 67 points. IT, media, and pharma indices closed with a positive note, but financial services and banking stocks closed in red mark. Nifty Bank closed at 17,278.20 slashing 456.20 points from the previous day’s closing.
As per weekly options data, a handful of call writing on higher strikes ranging from 8,800 to 9,000 is seen which shows Nifty would witness firm resistance in sub 9,100 zone. 9,000 will act as support as maximum put OI is placed here. But Nifty is likely to face stiff resistance at 9,300 as maximum call OI is placed hereafter 9,500. We can witness strength only if Nifty breaks the level of 9,300. Therefore, traders should try to create a long position keeping close eye on 9,000, as it might act as a base for weekly expiry.
We can see a big momentum in the following stocks:
Buy: Piramal Enterprises Limited (NS:PIRA) (Above Rs 964)
Target (NYSE:TGT): Rs1035
Stop loss: Rs 915
Stock is witnessing reversal patterns in daily charts and bounced from its important moving average. Further, the stock is witnessing resistance breakout from 964 might lead the stock to witness more upward movement.
Considering the technical evidence discussed above, we recommend buying the stock above 964 for the target of 1035, keeping a stop loss at 915 on a closing basis.
Buy: Balkrishna Industries (NS:BLKI) Limited (Above Rs 1010)
Target: Rs 1080
Stop loss: Rs 959
Stock is trading at the resistance zone in daily charts. Further, the stock is taking support from its important moving average. Breakout from its resistance levels of 1010 would lead the stock to witness more upward movement.
We recommend buying the stock above 1010 for the target of 1080, keeping a stop loss at 959 on a closing basis.