The market traded with positive sentiments as global markets continue to inch forward and Nifty closed on a strong note on a weekly basis. Nifty managed to close above 10,000 mark but broader indices continue to shine. Nifty managed to close at 10,142.20 adding 113.40 points. PSU banks (the key reason behind as SBI (NS:SBI) declared results better than expected), and metal closed with a positive note, but FMCG and IT stocks closed in red mark. The Nifty Bank closed at 21,034.50 adding 644.05 points from the previous day’s closing.
As per weekly options data, a handful of put writing on higher strikes ranging from 9,800 to 10,100 is seen which shows Nifty might witness support in the subzone of 10,000, 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 the level of 10,000. Therefore, traders should try to create a long position keeping a close eye on 10,000, as it might act as a base for this weekly expiry.
We can see a big momentum in the following stocks:
Buy: Maruti Suzuki (NS:MRTI) India Limited (Above Rs.5780)
Target (NYSE:TGT): Rs 6060
Stop loss: Rs 5570
The stock is a bullish flag pattern in daily charts and bounced from its important moving average. Further, the stock is witnessing resistance breakout from 5780 might lead the stock to witness more upward movement.
Considering the technical evidence discussed above, we recommend buying the stock above 5780 for the target of 6060, keeping a stop loss at 5570 on a closing basis.
Buy: Mahindra & Mahindra (NS:MAHM) Financial Services Limited (Above Rs.157)
Target: Rs 168.80
Stop loss: Rs 147
The stock is trading at its important moving average in daily charts, if somehow stock breaks its immediate resistance level of 156.70 then we might witness strong upside momentum. The stock has rebounded from its important support level.
We recommend buying the stock above 157 for the target of 168.80, keeping a stop loss at 147 on a closing basis.
Disclaimer: The analyst does not hold a position in any of the stocks mentioned above.