Nifty registered a record peak of 14,653; however, erasing early gains, it lost more than 200 points from the day’s high. It recouped intraday losses and eventually ended on a flat note. Sustenance beneath 14,650 could attract some higher price volatility and consolidation within a band of 14,400-14,650 is possible.
Post Tuesday’s up move, the Bank Nifty formed an indecisive candle. It recouped the day’s losses but failed to surpass the morning high of 32,684. Follow-up action needs to be closely watched out as sustenance above 32,500 is essential to continue recent uptrend.
PSU Bank index outperformed for the consecutive session. It rallied 3% and has more room on the upside. However, the Private Bank index ended on a flat note and has formed multiple peaks near 17,900. Inability to hold current levels in the private banking space could attract some profit taking.
Equity recommendation
Buy Hindustan Copper near Rs 65.5
- Stop loss: Rs 60.5
- Target: Rs 76
- The stock stood out strongly in the Nov-Dec month and this month, it is consolidating at upper band holding ground above important averages. Recent consolidation seems to be in a mature phase and positive follow through could resume the uptrend.
Buy NMDC near Rs 125
- Stop loss: Rs 118
- Target: Rs 140
- Series of ascending tops and bottoms has kept the near-term outlook positive. Sustenance above 21-days EMA could lift the stock gradually higher till Rs 140 zone.
(
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.)
