‘Derivative data suggest Nifty on track to hit 11,150 in a few sessions’

Nifty can move towards 11,000-11,150 in coming sessions as the market undertone remains bullish with the support of consistent short covering, derivative data suggest

The Nifty is still facing hurdles to surpass 11,000 despite starting the week on a positive note as once again bears tried to take control and capped any sharp gains in the index.

However, on the technical ground, markets are trading near weekly highs and maintaining well above its short and long-term moving averages with the formation of a higher high and higher bottom pattern on the daily interval.

However, the derivative data at reflects there is still a lot of outstanding short position in the Nifty and index calls are held and we may expect another round of short covering moving forward.

Nifty can move towards 11,000-11,150 in coming sessions as the market undertone remains bullish with the support of consistent short covering, derivative data suggest.

Derivative data indicates bullish scenario to continue with Nifty having multiple supports at lower levels around 10,850 and 10,800.

The option writers were seen active as we observed put writing in 10,700 and 10,800 strikes. Among Nifty Call options, the 11,000 strike Call has the highest open interest of more than 34 lakh shares, whereas in Put options, 10,700 strikes hold the maximum open interest of nearly 37 lakh shares.

Here is a list of three stocks which could give up to 8 percent return in next 1 month:

Bajaj Finance Limited: Buy| Target: Rs 2,810| Stop loss: Rs 2,460| Upside: 8 percent

After testing Rs 2,660, the stock witnessed profit booking at higher levels and retraced back towards Rs 2,500 to take support at its 100-day exponential moving average.

However, since then, bulls took control over the stock as prices surpassed above its falling trend line of the downward sloping channel.

The pullback has also formed rounding bottom pattern on the daily interval. Traders can accumulate the stock in a range of Rs 2,600-2,625 for the upside target of Rs 2,810 and a stop loss below Rs 2,460.

Havells India Limited: Buy| Target: Rs 762| Stop loss: Rs 670| Upside: 8 percent

From the last four weeks, the stock has been consolidating in a range of Rs 670-700 along with consistent buying at lower levels.

On the technical ground, the stock has given a breakout above the symmetrical triangle pattern along with large volumes which suggest more upside in prices moving forward.

Traders can accumulate the stock in a range of Rs 705-710 for the upside target of Rs 762 and a stop loss below Rs 670.

Dabur India Limited: Buy| Target: Rs 465| Stop loss: Rs 410| Upside: 8 percent

In the recent past, the stock has given a breakout above the inverted head and shoulder pattern and tested Rs 456 in a short span of time.

However, due to profit booking, the stock retraced back towards Rs 420 to take support at its short and long-term moving averages.

Now, once again, the stock has formed an inverted head and shoulder pattern and is on verge of a fresh breakout above the neckline. Traders can accumulate the stock in the range of Rs 430-434 for the upside target of Rs 465 with a stop loss below Rs 410.

Disclaimer:-The views and investment tips expressed by investment experts are their own. Ripples Advisory advises users to check with certified experts before taking any investment decisions.

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