Indices Rallied Further For Third Consecutive Day; Nifty Closed Above 9500

Published 01-06-2020, 12:38 pm
Updated 09-07-2023, 04:02 pm

The market traded with positive sentiments and witnessed strong momentum despite soft global cues. Nifty managed to close above 9500 mark which shows the confidence from bulls. Nifty managed to close at 9580.30 adding 90.20 points. The reality, pharma, and FMCG closed with a positive note, but IT and media stocks closed in red mark. The Nifty Bank closed at 19,297.25 adding 127.45 points from the previous day’s closing.

As per weekly options data, a handful of put writing on higher strikes ranging from 9,200 to 9,500 is seen which shows Nifty would witness support in the subzone of 9,300 zones. 9,200 will act as support as maximum put OI is placed here. But Nifty likely to face stiff resistance at 9,500 as maximum call OI is placed here. We can witness weakness only if Nifty breaks the level of 9,200. Therefore, traders should try to create a long position keeping a close eye on 9,200, as it might act as a base for weekly expiry.

We can see a big momentum in the following stocks:

Buy: Reliance Industries (NS:RELI) Limited (Above Rs 1483)
Target (NYSE:TGT): Rs 1535
Stop loss: Rs 1440
Stock is forming a rounding pattern in daily charts and bounced from its important moving average. Further stock is witnessing resistance breakout from 1482 which might lead the stock to witness more upward movement. Considering the technical evidence discussed above, we recommend buying the stock above1483 for the target of 1583, keeping a stop loss at 1440 on a closing basis.

Buy: Piramal Enterprises Limited (NS:PIRA) (Above Rs.985)
Target: Rs 1075
Stop loss: Rs 930
Stock is trading at the major resistance zone in daily charts. If somehow stock breaks the level of 982, then we might witness strong upside momentum. Stock is trying to break its important moving averages. We recommend buying the stock above 985 for the target of 1075, keeping a stop loss at 930 on a closing basis.

Disclaimer: The analyst does not hold a position in any of the stocks mentioned above.

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