Nifty view and trading ideas by CapitalVia: Buy Asian Paints, Berger Paints

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

Market gained for second straight session; Nifty likely to hold 11,800 ahead of expiry
 

Markets traded with positive sentiments throughout the day on Wednesday and one should hold 11,800 which will act as an important level ahead of monthly expiry. Nifty closed at 11,844.10 adding 57.20 points. FMCG and IT stocks traded with positive sentiments throughout the day and gained most among indices. Nifty bank closed at 29,987.50 adding 220.03 points positive from the previous day’s closing.
 

As per monthly option data, handful of Put writing on strikes ranging from 11,800 and 11,850 which shows Nifty likely to take support in this zone. But call writers were active on higher strikes of 11,850 and11,900 which will be resistance ahead of weekly expiry. Trader should remain positive bias as market as put OI is at 11,800 which will act as major support levels for the month. 12,000 will act as stiff resistance as maximum OI for the calls stands here. However, if somehow Nifty breaches level of 11,900, it will lead to short covering move up to 12,000 levels. Therefore, traders should keep a positive bias and should buy at every dip keeping close eye on 11,775. 
 

We can see a big momentum in following stocks: 
 

Buy Asian Paints above Rs 1830 
 

Target:  Rs 1,930
 

Stop loss:  Rs 1,770
 

The stock is witnessing resistance breakout from the levels of 1830 further stock is giving crossover on MACD on daily charts and gave closing above the resistance level and breaching this level will result in good upside momentum. Considering the technical evidence discussed above, we recommend buying the stock above 1830 for the target of Rs 1930, keeping a stop loss at Rs 1770 on closing basis.
 

Buy Berger Paints above Rs 503
 

Target: Rs 530
 

Stop loss: Rs 485
 

After consolidating in a narrow range stock has given breakout from bullish flag from level and further strength from the levels of 502 will lead to a bullish movement. We recommend buying the stock at 503 for the target of Rs 530, keeping a stop loss at Rs 485 on closing basis.

=============================

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