Nifty likely to open on positive note; top 4 stocks to pick in range bound market

The Nifty, which opened with a slight gap on the upside, failed to hold on to gains as the index witnessed selling pressure post opening. The Nifty index opened positive but failed to hold above 9,880 and remained in the range of 30 points for the entire trading session. For the bulls to remain in command, the index has to close above 9,948 for the momentum to strengthen.

The Nifty closed at 9,857.05 on Thursday. According to Pivot charts, the key support level is placed at 9,843.43, followed by 9,829.82. If the index starts to move higher, key resistance levels to watch out are 9,876.08 and 9,895.12.

The Nifty Bank closed 42.6 points lower at 24,274.2 on Thursday. Important Pivot level, which will act as crucial support for the index, is placed at 24,195.63, followed by 24,117.07. On the upside, key resistance level are 24,381.93, followed by 24,489.66.

The Nifty50 futures on the Singapore Stock Exchange were trading 19.50 points higher at 9895 indicating a positive opening for the domestic market.

According to Technical Analyst Prakash Gaba of prakashgaba.com, crucial support for the Nifty is at 9785 and the resistance is at 9911. Bank Nifty on the other hand has support at 24074 and resistance at 24511.

Bajaj Finserv: Indicator Buy | Rating: Buy | Target: Rs 5,600, stop loss: Rs 5,400

Allahabad Bank: Indicator Buy | Rating: Buy | Target: Rs 70, stop loss: Rs 67

Divis Laboratories: Base Formation | Rating: Buy | Target: Rs 700, stop loss: Rs 660

Interglobe Aviation | Rating: Sell | Target: Rs 1160

"I like two stocks basically. I will start with Adani Power. That certainly is looking good to me. Looks like a good base formation, a breakout has come in. Target on the upside is Rs 32 plus zones, keep stop loss below Rs 29."

"I also like Ashok Leyland. It is trying to form a base out here. It can climb to levels closer to Rs 106-108 zones, keep stop loss below Rs 102. It may take a day or two for that."

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