HUL, Yes Bank, M&M and Sun Pharma look strong to go higher

Ashish ChaturmohtaHead – Technical and Derivatives, Sanctum Wealth ManagementWhere we are: The Nifty closed the last week on positive note at 11,471 levels up by 0.75 per cent for the day and on weekly basis ended higher by 0.36 per cent after touching low of 11,340 level. For the week ending 10th August index had formed Doji-like candlestick pattern on the weekly chart after touching the upper end rising trading channel connecting lows of 9,958-10,604 and highs of 10,929-10,495. Since then index has seen some profit booking and traded sideways last week.What is in store: On daily time frame Nifty has managed to hold above the rising support trend line connecting lows of 10,558-10,946 and seen a bounce back. Price and Relative strength index on daily chart are showing positive reversal; i.e. RSI is making lower low while Nifty is seeing higher high formation which is generally seen in rising market. Thus, crossing above 11,495 levels expect the uptrend to continue towards 11,580 and then 117,00 levels. On downside market has immediate support at 11,340 levels. Breaking below this level market is likely to test important support level of 11,200-11,170 which is the previous all-time high and breakout level.What you could do: In Nifty options, maximum open interest in puts stands strike price 11,000 followed significant build up at 11,400, 11,300 and 11,200 indicating as good supports at lower levels; while in calls maximum build up is seen at 11,500 and 11,600 indicating as immediate hurdle for the market. In Friday’s session good amount of Put writing was witnessed in 11,500 and 11,400 while Call unwinding in 11,500 suggests market is likely to head higher. India VIX closed lower by 3.5 per cent at 13.16 levels but it is trading in a range and crossing above 14 levels could spoil the rally. Stocks like L&T Finance Holdings, Hindustan Unilever, Yes Bank, Mahindra & Mahindra and Sun Pharma are looking strong to rally higher from current levels.

from The Economic Times https://ift.tt/2Br7zvB