Top stock picks by CapitalVia: Buy Adani Ports, Mannapuram Finance

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

Indices traded in range on Friday; Nifty finds critical support 9,050

Market opened gap-up on Friday but remained range bound, however, it did manage to cut majority of the intraday loss by the end of the day. Nifty managed to close at 9136.85, slashing 5.90 points. Media, PSU banks, and realty sector were among sector trading with negative sentiments, whereas Metal and FMCG sector closed in green mark. Nifty bank closed at 18,833.95, slashing 234.55 points from the previous day’s closing.
 

As per the weekly option data, handful of put writing on lower strikes ranging from 8,800 to 9,100 is seen which shows Nifty would witness firm support in sub 9,000 zone. The level of 9,000 will act as support as maximum put open interest (OI) is placed here. But Nifty is likely to face stiff resistance at 9,500 as maximum call OI is placed here. We can witness strength only if Nifty breaks level of 9,500. Therefore, traders should try to create long position keeping close eye on 9,000.

We can see a big momentum in following stocks: 

Buy: Adani Ports and Special Economic Zone Limited (Above Rs.312.20)

Target: Rs 333

Stop loss: Rs 299

The stock is witnessing a reversal pattern on daily charts. Further, it is witnessing resistance breakout from 312 which might lead the stock to witness more upward movement. Considering the technical evidence discussed, we recommend buying the stock above 312.20 for the target of 333, keeping a stop loss at 299 on a closing basis.

Buy: Manappuram Finance Limited (Above Rs.132)

Target: Rs 155

Stop loss: Rs 120

The stock is witnessing a reversal pattern on daily charts. Further, it is taking support from its important moving average. Breakout from its resistance levels of 132 would lead the stock to witness more upward movement. We recommend buying the stock above 132 for the target of 155, keeping a stop loss at 120 on a closing basis.

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