Nifty erased the gains registered in the past two weeks. However, in Friday’s trade, Nifty witnessed a swift recovery following a negative start after marking the day’s low at 14,350. On the weekly chart, Nifty formed a large bearish candle, however, with a relatively large lower shadow, it represents higher price volatility with the influence of resistance at play near 15,000, and renewed buying interest near 14,400. Going ahead, the ongoing higher price volatility is likely to continue, and the 14,950 levels could act as a hurdle zone.
BankNifty underperformed significantly last week, losing 3.8 per cent. Mild consolidation is possible in the BankNifty after an 11.5 per cent decline from its record peak.
The FMCG index witnessed a consolidation breakout. A positive follow-up through could lift the index towards uncharted territory.
RECOMMENDATIONS
- Buy Godrej Consumer Products near Rs 665
Stop loss: 635
Target: 730
After losing 20 per cent from the January peak, some positive traction is visible near multiple support zones near Rs 655. Positive follow-up action could mean that the stock is due for mean reversion.
- Sell SRF March futures near Rs 5,350
Stop loss: Rs 5,550
Target: 4,950
The stock has broken various support levels in the recent decline. The levels of 5,500 could turn out as a hurdle, and on the flip side, it is likely to drag lower till Rs 4,950.
