The Nifty50 opened gap-down but retained a positive bias throughout the day. On the lower end, bulls were able to protect 17,500 on a sustained basis, which attracted buyers at the lower levels.
The trend remains positive for the near term. On the lower end, support is visible at 17,470 below which the Nifty may drift down towards 17,200. Resistance is visible at 17,750.
The open interest data suggests fresh Call writing at 17,700 and 17,800 strikes which will act as stiff resistance and a break above this will result in short covering.
The lower-end Put writing is visible at 17,500 and 17,300 strikes which will act as a cushion and any breach below this level on a closing basis will give full control to the bears to drag down the index towards the 17,000-16,800 levels.
Here are two buy calls and one sell call for the next 2-3 weeks:
Cipla: Buy | LTP: Rs 1,051.5 | Stop-Loss: Rs 950 | Target: Rs 1,200-1,240 | Return: 14-18 percent
The stock on the daily chart has formed a strong rounding base formation and is on the verge of a breakout. The F&O data, too, suggest the building of fresh long positions with the rise in price and rise in open interest.
The momentum oscillator RSI (relative strength index) has also given a positive crossover and entered the buy zone of 60 which confirms the strength.
Oberoi Realty: Buy | LTP: Rs 1,019 | Stop-Loss: Rs 960 | Target: Rs 1,210-1,250 | Return: 19-23 percent
The stock on weekly chart has given a breakout from a trend line with rising volumes indicating strength in the stock. On the daily chart, the stock had given a breakout from a broadening triangle pattern.The weekly RSI level has entered the strong buying zone of 60 which will accelerate the momentum on the upside once Rs 1,060 is taken out on the higher side.
Tata Motors: Sell | LTP: Rs 445.85 | Stop-Loss: Rs 480 | Target: Rs 420-400 | Return: 6-10 percent
The stock on the daily chart is trading in a strong downtrend with lower top and lower bottom formations intact. The stock is trading below its 20-day moving average which is placed at Rs 470 and as long as this level is not breached the momentum remains on the downside.
The RSI, too, has entered below the level of 40 which confirms the bearishness in the stock.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.