Gaining for the consecutive session, volatile Nifty reclaimed levels of 14,800-mark. Intraday decline found support near 14,650, whereas the momentum on the upside picked up as it sustained above the 14,700 zone. After marking the day’s high at 14,880, Nifty formed a bullish candle with 86% of its components settling in the green. Going ahead, levels of 14,600 could turn out as immediate floor, while positive breakthrough above prior week’s high (i.e. 14,883) is likely to lift the index towards 14,950.
Recovering prior sessions’ losses, Bank Nifty ended above 33,000. Positive follow-up action could attract mild recovery towards the 33,500-33,700 zone. Defending prior week’s low, PSU banks gained some positive traction. However, positive follow through is required for any bounce.
Recommendations
Buy Nava Bharat Ventures near Rs 72.5
Stop loss: Rs 69
Target: Rs 80
Congestion breakout along with sustained move above important averages is likely to lift the stock till Rs 80 zone.
Buy Star Cement near Rs 97.5
Stop loss: Rs 94
Target: Rs 106
After correcting ~19% from the March peak, the stock is forming higher lows. Positive follow-up action above Rs 98 could attract some buying interest.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
