The Nifty ended higher for the straight fourth session as it revisited levels of 15300-mark in today’s trade. The Nifty eventually formed a bullish candle with a close above Tuesday’s high. Positive follow-up action above 15,300 is essential to make an attempt towards an all-time higher zone. Moreover, tomorrow we have expiry for the May derivative contracts; hence, higher price volatility is plausible.
Intraday rally in the Bank Nifty remained short lived. It formed an NR4 chart pattern (i.e. narrowest high/low range as compared to prior three sessions range). It represents indecisiveness near the 35,000-mark.
Metal index resumed its recent downtrend. A decisive break below recent low could attract further price correction.
Recommendations
Sell June future near Rs 179
Stop loss: Rs 182.5
Target: Rs 172
After the prior week’s decline, recovery remained short lived. Sustenance below Rs 180 could drag the stock lower till Rs 172 zone
Buy near Rs 1,475
Stop loss: Rs 1425
Target: Rs 1,575
Sustained move above important averages and appearance of sizable bullish candle indicates more room on the upside.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
