Day trading guide: 15,000-15,050 level could turn out as immediate hurdle for Nifty

YES Securities


Markets turned cautious ahead of the FOMC meet outcome. After three days’ decline, Nifty opened on a positive note. However, yet again, the inability to build on gains at higher levels dragged the index lower. Selling pressure intensified as it broke below 14,800, while eventually marking day’s low at 14,696. Nifty ended at 14721, down 189 points. The Nifty breadth was negative with 48 out of Nifty50 constituents settling in the red. Moreover, all the sectoral indices ended in the red. Post four days’ decline, a mild recovery might be there. However, shifting range lower, levels of 15,000-15,050 could turn out as an immediate hurdle zone. On the flip side, Nifty’s ongoing correction could extend till the 14,580 zone.

Intraday recovery in the Bank Nifty remained short lived, finding stiff resistance near 35,100. Forming a large bearish candle, Bank Nifty fell as much as 34,149 with close near day’s low. Within banking space, PSU Bank index underperformed most, losing 4%. Bank Nifty ended near its 50-day EMA. Follow-up action needs to be closely watched out as inability to sustain at current levels could attract further correction till 33,800.

Continuing recent downtrend, auto index lost 2%. Any decisive breakthrough below prior month’s low in the auto index could attract further underperformance.

Recommendations

Sell March future near Rs 72.8-73

Stop loss: Rs 76.2

Target: Rs 66

The recent rally in the stock remained short lived. Appearance of lower highs along with close below short-term averages indicates possible further price correction.

Sell Lupin March future near Rs 1,030

Stop loss: Rs 1,060

Target: Rs 970

The stock is going through the corrective phase. Sustenance below levels of Rs 1,050 could drag the stock till Rs 970 zone.

Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.



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