Nifty rallied for the consecutive fourth session today. However, yet again the Nifty traded between a narrow trading band of 74 points. On the flip side, Nifty defended the levels of 14900. On the higher side, it made multiple peaks near 14,965 before settling at 14,942. up 119 points. Follow-up action after multiple indecisive candles needs to be closely watched out. In the previous month, momentum stalled near the 66.6% retracement levels. A decisive breakthrough above 15,000 is essential to unlock upside potential till the 15,250 zone.
Bank Nifty gained some positive traction. However, it failed to settle above the prior session’s high. Bank Nifty traded within 269 points, which is its lowest daily range since 1 Jan 2021.
After taking a pause for a couple of days, the pharma index jumped 3%. FMCG index’s northbound journey at the uncharted zone is likely to continue.
On the options front, additions are visible at 15,000 Call and 14,900 Put Strikes, which means traders are not expecting any major move on either side.
Recommendations
Buy near Rs 164
Stop loss: Rs 158
Target: Rs 177
After surpassing multi-year higher zone, the stock is holding ground above levels of Rs 160. Positive follow-up action could lift the stock towards the Rs 177-180 zone.
Sell Dhanuka near Rs 840
Stop loss: Rs 800
Target: Rs 920
Forming a large bullish candle on comparatively higher volumes, the stock has witnessed positive breakthrough at multi-month higher zone.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
