F&O Strategy: Despite a tumultuous trading session on Thursday, the Nifty was able to conclude higher and retain its solid position thanks to falling US bond rates. With the index surpassing 20,000, November saw a 5% increase, driven by India’s 7.6% GDP growth, which exceeded forecasts.
Put Writers Defend 20,000 Strike, Boosting Bullish Sentiments
F&O Strategy, The idea that put writers near the 20,000 strike will defend this level is keeping the market sentiment bullish and encouraging the bulls. Senior Technical Analyst at LKP Securities Rupak De says that as long as Nifty remains above 20,000, the market will remain optimistic; a decline below this level could cause optimism to wane.
Trade Strategies and Resistance Levels
F&O Strategy, De notes that traders should adopt a buy-on-dips strategy and that the barrier is located at Rs 20,200–20,230. If this barrier is broken, the index may move towards 20,450–20,500.
Analyst Insights on Stocks in Focus:
Grasim Industries – All-Time High Breakout
F&O Strategy, Director and Senior Technical Analyst at Rupeezy Sheersham Gupta emphasises the all-time high breakout of Grasim Industries. The stock saw a drop and found support at the 100 DMA after running into opposition at the psychological level of 2000. With robust levels, Grasim closed above 2000, validating the breakout. Gupta recommends a short-term upward advance to levels of 2100–2140 and a medium-term increase to 2200, with a stop loss at 1940.
Axis Bank – ‘Cup and Handle’ Breakout
F&O Strategy, ‘Cup and Handle’ breakout is seen in Axis Bank, claims Gupta. The stock produced a significant volume breakout following a drop from the supply zone near 1050, and the Daily RSI shows strength. On the derivative front, call buying was seen on both sides of the ATM. In the short to medium term, Gupta sees levels around 1200, with a stop loss just below 1000.
LTIMindtree – Double-Bottom Pattern Breakout
F&O Strategy, For LTIMindtree, Gupta observes a double-bottom pattern breakout. The stock formed a double-bottom breakout pattern after making a large drop from its all-time high and crossing the heavy resistance at 5500 with good volumes. The RSI shows momentum on the upswing, and Gupta believes there will be a short-term advance to 6000. For the purpose of making sure the stock keeps up its positive momentum, a dynamic stop loss is advised near the 50 DMA.