Nifty recouped 50% of the recent multi-month losses in just five sessions. Continuing Tuesday’s uptrend, Nifty today opened on a gap up note above 14,700. With sustained up move, it rallied as much as 1,4890 before settling at 14,865, up 212 points. During the process, the Nifty also filled its downward gap at 14,786, which it formed on 12 April.
After rallying ~5% from the recent low, mild throwback might be there to digest the recent up move. However, shifting range higher, levels of 14,550 could act as a support zone.
Bank Nifty gained over 2%, up for the third session. Immediate floor is seen near 32,500, while post mild consolidation, Bank Nifty might inch higher towards 34,200-34,400 zone.
Equity recommendations
Buy near Rs 540
Stop loss: Rs 525
Target: Rs 570
Recent decline found renewed buying interest near Rs 500 zone. Swift recovery thereafter ensures influence of support at play, while positive follow through could lift the stock towards the Rs 570 zone.
Buy CG Power near Rs 70-69.5
Stop loss: Rs 66.3
Target: Rs 77
After losing ~20% from the recent peak, the stock has managed to defend support of Rs 65. Recent positive traction could mean resumption of prevailing uptrend. Overall series of ascending tops and bottoms on medium-term charts remain intact.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
