Nifty outlook, top stock picks by CapitalVia: Buy Dabur, United Breweries

Technical calls by Gaurav Garg, Head of Research, CapitalVia Global Research Limited- Investment Advisor

Nifty View
 

The market traded in a range on Friday with recovery from the lower levels. Some sort of recovery was also seen in Auto, Banking and NBFC space. Benchmark index Nifty closed at 11,284.30 but below its 200-day EMA for the second straight session. However, Nifty Bank managed to hold its 200-day EMA at 28,900 levels and closed at 29,325.30. As per Option data, Nifty has witnessed call writing at 11,300 strike which is a clear resistance level and fresh put writing at 11,200 which will act as a support. In the coming week, we can see a big movement in FMCG stocks:

Buy Dabur (Above Rs 430)

Target: Rs 455

Stop loss: Rs 412
 

The stock was trading with positive bias irrespective of current market sentiments. The level above 430 would result in MACD bullish crossover on the daily charts. Moving average and Oscillator setup is bullish on the short-term and medium-term charts.

Considering the technical evidence discussed above, we recommend buying the stock above 430 for the target of Rs 455, keeping a stop loss at Rs 412 on a closing basis.

Buy UBL (above Rs 1,420)

Target: Rs 1,385

Stop loss: Rs 1,480

The stock has been in the narrow consolidation in the recent past. Breakout from the 1,420 level would result in strong bullish movement. The script is trading above all important moving averages. Considering the technical evidence discussed above, we recommend buying the stock above Rs 1,420 for the target of Rs 1,480, keeping a stop loss at Rs 1385 on closing basis.

Disclaimer: The analyst does not hold positions in any of the stocks mentioned above