Indian market ended the week on a positive note after witnessing some good amount of correction on the back of new COVID strain. Nifty has respected its crucial support of 13,100 and bounced back in the later half of the week to test its all-time high. Nifty Futures closed positive with a 1.10 percent gain at 13,761 level. India VIX fell 2.60 percent from 20.49 to 19.96 level. This has to come down below 19 for bulls to take control over the market.
On the options front, maximum Put open interest stood at 13,000 level followed by 13,500, while maximum Call open interest was at 14,000 followed by 14,500 levels. There was Call writing at 14,000 and then 14,200 levels while Put writing was seen at 13,700 and then 13,600 levels.
Nifty is likely to face resistance around the 13,770 – 13,800 zone. Any breakout over the above mentioned level would provide strength to the benchmark index in order to test its psychological resistance of 14,000 in the near term. The supports for Nifty are placed at 13,400 and 13,100.
Here are three stock picks for the next week:
REC: Buy above Rs 144 | Target: Rs 168 | Stop Loss: Rs 124
This stock has given a trend line breakout and witnessed some good amount of correction. It is trading above its important moving averages. Any breakout above the level of Rs 144 would add further upward momentum to the stock. We recommend initiating a long position above Rs 144 with a stop loss of Rs 124 and Rs 168.
HEG: Buy Above Rs 951 | Target: Rs 1,160 | Stop Loss: Rs 785
This stock has formed a reversal kind of pattern on its daily charts and trading above its important moving averages. It is also supported by a trend line breakout. Any breakout above the level of Rs 951 would add further upward momentum to the stock. We recommend initiating a long position above Rs 951 with a stop loss of Rs 785 and Rs 1,160.
ICICI Lombard General Insurance Company: Buy Above Rs 1,531 | Target: Rs 1,680 | Stop Loss: Rs 1,399
This stock has formed a flag kind of pattern on its daily charts and trading above its important moving averages. It has given a resistance level breakout and formed a consolidation pattern as well. Any breakout above the level of Rs 1,531 would add further upward momentum to the stock. We recommend initiating a long position above Rs 1,531 with a stop loss of Rs 1,399 and Rs 1,680.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.