Losing 4% from last week’s high, the Nifty corrected for the consecutive session. The Nifty opened on a gap down note. However, after marking the day’s low at 14,416, the Nifty recouped early losses to settle on a flat note. Today’s price action took the form of ‘bullish meeting line’ candlestick pattern (i.e. following bearish candle, Nifty opened with a downward gap but closed near the prior session’s close).
Recent swift decline ensures immediate hurdle near the 14,750-14,800 zone, while today’s recovery could attract some consolidation within a band of 14450-14750 zone.
Bank Nifty fell 7% from the recent peak. Even today, it underperformed the benchmark index. However, recovering some of its early losses, the Bank Nifty settled at 32,466, down 316 points. Sustainability is required for any revival in Bank Nifty.
Recommendations
Buy V-Guard Industries near Rs 223-222
Stop loss: Rs 216
Target: Rs 235
After losing 16% from the recent peak, the stock is holding its 100-day average levels. Positive follow-up action could attract mild recovery till Rs 235 zone.
Buy near Rs 86-87
Stop loss: Rs 83
Target: Rs 94
Multi-month decline found renewed buying interest near mid-point of the May 2020-Mar 2021 up move. After losing 27% from the March peak, short-term bounce towards Rs 94 is possible.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
