Continuing Friday’s throwback from 15,300 zone, Nifty in today’s trade faced another round of selling, which dragged the index lower by as much as 14,746. Mild recovery was visible in the second half of the session. However, eventually the Nifty ended at 14,930, down 101 points. Appearance of another bearish candle ensures influence of resistance at play, while shifting range to lower levels of 15,150 could act as an immediate hurdle.
On the sectoral front, the metal index rebounded from the lower levels, while the auto index remained under pressure. Bulls regained momentum in the IT space, whereas pharma index fell below its prior month’s low. Negative follow-up action could attract further underperformance from the pharma space.
Recommendations
Sell Torrent Pharma March future near 2,460
Stop loss: 2,515
Target: 2,350
The stock is going through the corrective phase. Sustenance below levels of 2,500 could drag the stock till 2,350 zone.
Sell APL Ltd March future near 920
Stop loss: 945
Target: 870
Forming a series of descending peaks and lows, the stock has formed a bearish candle below short-term averages. Negative follow-up action could unlock further downside potential.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
