closed at 17,026.45 nearly 738 points lower than the previous week’s close which was 17,764.80. The support of Nifty seems to be around 17,000 and resistance at 17,500. The PCR is around 0.42 for the 2nd December expiry which seems to be indicating bullish sentiment, but the closing of the market suggests otherwise.
The most active Put was that of 36,500 PE with OI of 31,874 and Call was of NIFTY 17,500 CE with the OI of 1,32,084. Nifty has closed below its support level of 17,200 and therefore in the coming weeks we expect the markets to further correct and trade in the range of 16,800-17,500. Stocks that have seen the most active call options were Cipla (NS:) 1000 CE and the put option was Bank of Baroda Ltd (NS:) 85 PE.
Here are a few top picks for the week:
1. BUY: Biocon Ltd. (NS:) 360 CE (17-18)
TARGET: 30
STOP LOSS: 9
The stock is sustaining above its important moving averages and one can see an impending cross-over on the weekly charts. The stock is also expected to give a trendline breakout on its weekly charts along with a hammer candlestick pattern on monthly charts. The index is also bouncing back from its support level which is expected to aid the momentum in the sector and the stock. The PCR of the stock is 0.4 which seems favorable. Therefore, we advise taking a position above 17 with a Target of 30 and a Stop Loss of 9.
2. BUY: Dr Lal PathLabs Ltd (NS:) 3600 CE (202-203)
TARGET: 247
STOP LOSS: 159
The stock has bounced back from its support level and is forming a rectangle pattern at its support level, the breakout above the level of 3712 is expected to start an afresh rally with a decent volume backing it up. The stock is also consolidating on its weekly chart with an impending breakout. The Nifty pharma index is also bouncing back from its support level which is expected to aid the momentum in the sector and the stock. The PCR is 0.2 which seems favorable. Therefore, we advise taking a position above 202 with a target of 247 and a stop loss of 159.
Disclaimer – Neither CapitalVia nor its analysts hold a position in any of the stocks mentioned above.
Read More: Option Picks for the Week