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As expected Indian market traded in a wide range last week and confidence of bulls was seen at every dip. Continued foreign fund inflow and a stable rupee boosted the market sentiments and Nifty finally closed with the gain of 0.9 percent weekly at 10682.2.
Trading in a range is likely to continue in the coming week and dips are likely to be bought.
Fresh put writing in 10,700 strike price suggests the optimism of bulls. Multiple support can be seen looking at the data where approximately 3.35 lakhs contract has been added in 10,600 put option and cumulative open interest in 10,500 put option is raised up to 28 lakhs contract approximately.
Call writing, on the other hand, has shifted towards 10,800 strike price and no writing has been seen in 10,700 strike price suggesting support is shifting upward.
Technical setup also suggests Nifty is moving towards its 200-DMA (10755). However, for further fresh upside, 10,830 need to be taken out on higher side decisively. 10,480, on the other hand, will act as a major support for the week which is 61.8 percent retracement level of the last week range.
In a nutshell, Nifty is likely to trade in the range of 10,480-10,800 in the coming week with a positive bias and dips should be used for buying until 10,480 holds.
ICICI Bank | Rating: Buy| Target: Rs 411 | Stop loss: Rs 342 | Return: 12 percent
The stock has given breakout and trading at an all-time high. Cup and handle formation has emerged on the daily chart. Momentum indicators in
monthly, weekly and daily time frame are trading in a positive zone. The monthly chart is trading with higher top and higher bottom formation
and the current breakout is likely to take bullish move forward. Thus, the stock can be bought for short-term gain.
Britannia Industries | Rating: Buy | Target: Rs 6,600 | Stop loss: Rs 5,560 | Return: 11 percent
The stock has bounced back from 50-DMA on weekly chart after decent correction. RSI has bounced back from important support zone.
Monthly RSI also suggests a reversal after a recent correction.
Price has corrected till 61.8 percent retracement of latest swing move and is now trading above important moving averages on the daily chart. Momentum indicators suggest a bullish move to continue and the stock can be bought for short-term gain.
Raymond | Rating: Buy | Target: Rs 870 | Stop loss: Rs 723 | Return: 12 percent
The stock has violated the declining trend line and has witnessed a bullish crossover of important moving averages. RSI has started trading
in a positive territory that suggests a bullish momentum in coming days.
On the monthly chart, the stock has taken support at 50-day exponential moving average and has formed a bullish candle. Momentum indicators are also supporting the bullish reversal thus can be bought for short-term gain.
HDFC Bank | Rating: Buy | Target: Rs 2,280 | Stop loss: Rs 1,900 | Return: 12.5 percent
The stock has started trading above falling trend line and has closed above 50-day exponential moving average forming a long bullish candle.
Weekly RSI has taken support at an important level of 40. The monthly chart also shows a sign of reversal. The stock can be bought at present level and can be added on any decline till Rs 1,940 and can be held for short-term gain.
Disclosure: Rudra or its research analysts, or his/her relative or associate do not have any direct or indirect financial interest nor any other material conflict of interest at the time of stock recommendation in the subject company. Also, Rudra or its research analysts, or his/her relative or associates does not have actual/beneficial ownership of one percent or more securities of the subject company. However, Rudra or its research analysts, or his/her relative or associate may have positions In Futures & Options.
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