Losing over 5% from the record high, Nifty trended lower for the straight fourth session. The Nifty opened on a flat to positive note. However, after marking day’s high at 15,010, it soon entered negative territory. Selling pressure intensified as Nifty broke below 14,900 and eventually formed a large bearish candle.
The Nifty closed near the day’s low, losing 2%. Nifty breadth was negative with 40 out of Nifty 50 components settling in the red. Also, all the sectoral indices ended in the red, except the metal index.
With the given sharp downticks, the Nifty entered an oversold territory on intraday charts, which confirmed momentum on the downside. Mild pullback is possible to digest recent sell-off. However, sustenance above 14,700 is essential for any revival.
Equity recommendations
Buy near Rs 675
Stop loss: Rs 645
Target: Rs 730
With sustained move above important averages, the stock is holding ground above levels of Rs 650. Positive follow-up action above Rs 680 could lift the stock towards the Rs 730 zone.
Buy FSL near Rs 100-101
Stop loss: Rs 96
Target: Rs 112
The stock is bouncing off the support zone. Appearance of a bullish candle on a comparative volume warrants a positive outlook for the stock. However, sustenance above Rs 100 is essential to continue recent up move till Rs 112 zone.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
