Top Two Stock Picks For Monday's Session: Buy Escorts Limited And Apollo Hospitals

Markets closed in green mark despite opening with a huge gap down of almost 300 points due to soft global cues. Nifty closed below 10,000 which might act as a stiff resistance. Nifty managed to close at 9972.90 adding 70.90 points. Auto, realty, and PSU banks closed with a positive note, but technology and IT stocks closed in red mark. The Nifty Bank closed at 20,654.50 adding 129.35 points from the previous day’s closing.

As per weekly options data, a handful of put writing on higher strikes ranging from 9,400 to 9,700 is seen which shows Nifty might witness support in the subzone of 9,500. 9,500 also is likely to act as strong support as maximum put OI is placed here. But Nifty is likely to face stiff resistance at 10,000 as maximum call OI is placed here after 10,500 strike.

We might witness strength only if Nifty breaks the level of 10,000. Therefore, traders should try to create a short position keeping a close eye on 10,000, as it might act as a resistance for this weekly expiry.

We can see a big momentum in the following stocks:

Buy: Escorts Limited (NS:ESCO) (Above Rs. 980)
Target (NYSE:TGT):  Rs 1045
Stop loss:  Rs 940

The stock has made bullish “Marubozu candlestick” in daily charts and bounced from its important moving average. Further stock is witnessing resistance breakout from 980, which might lead the stock to witness more upward movement.
Considering the technical evidence discussed above, we recommend buying the stock above 980 for the target of 1045, keeping a stop loss at 940 on a closing basis.

Buy: Apollo Hospitals (NS:APLH) Enterprise Limited (Above Rs.1410)
Target: Rs 1530
Stop loss: Rs 1355

The stock has made bullish “Marubozu candlestick” in daily charts and bounced from its important moving average. Further stock is witnessing resistance breakout from 1410 which might lead the stock to witness more upward movement.
We recommend buying the stock above 1410 for the target of 1530, keeping a stop loss at 1355 on a closing basis.
 
Disclaimer: The analyst does not hold a position in any of the stocks mentioned above.