Future market outlook: 'Buy' Ajanta Pharma, says Vivek Gupta

Sep 05 2014, 17:10 IST
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SummaryNSE Nifty September Future began the week with the gap up opening on better than expected quarterly...

NSE Nifty September Future began the week with the gap up opening on better than expected quarterly GDP numbers and surged till the level of 8173.90 after crossing of its previous resistance mark. It showed some corrective movement towards the end of the week's trading. Nifty Future closed at 8112.85 with the net gain of 160.10 points. One should closely watch the CPI and IIP numbers going to be declared next week as market movement in near future is likely to be dependent on these data.

Technically Nifty Future is still looking bullish on charts , it may continue its bull run with the crossing of its resistance level of 8155 while with the breach of its support level of 8035 it may test the level of 7950 in coming trading session.

Open Interest Analysis:

Highest open interest was seen in Nifty 8000 put option followed by 7900 put option which indicates that the 8000 can act as important support level for Nifty Future in near term while Maximum open interest was observed in Nifty 8200 Call option, therefore 8200 will be an important resistance mark in near term.

Stock Recommendation:

Ajanta Pharma Buy

The major trend of the stock is bullish and is accumulating below the resistance level of 1650. Further it is sustaining above its 50 and 200 days moving averages. One may expect the targets of 1720 and 1770 with the crossing of the resistance level, while stop loss should be kept at 1580.

By Vivek Gupta – Director Research, CapitalVia Global Research Limited.

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