Continuing prior two weeks’ decline, Nifty commenced the truncated week on a gap down note. It opened near 14,300 and corrected till 14,191, eventually recovering some of early day’s losses, Nifty lost 1.8% in today’s trade. Post three days recovery, sudden change in sentiments erased recent gains. Levels of 14,500-14,560 could turn out as immediate hurdles, while some consolidation within a band of 14,150-14,450 is possible.
All the sectoral indices, except the pharma index ended in the red. Bank Nifty lost 2.2%, resuming its underperformance. Further underperformance is possible if Bank Nifty fails to sustain above the 31,000-mark.
Recommendations
Buy near Rs 315
Stop loss: Rs 305
Target: Rs 335
Post multi-month decline, the stock has gained positive traction in the recent past. Sustenance at current levels could unlock further potential on the upside.
Sell April future near Rs 1,720
Stop loss: Rs 1,755
Target: Rs 1,650
Continuing a downward trajectory, the stock has witnessed negative breakdown through the recent consolidation. Negative follow-up could attract further decline towards the Rs 1,640 zone.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
