The Nifty50 index moved higher for a fourth straight session. After Friday’s narrow range trade, the index made a low of 15,374. However, with sustenance above the 15,400-mark, bulls again regained momentum on the upside to take the index further into the uncharted zone. The appearance of another bullish candle ensures the shift of base on the upside. Levels of 15,350 could turn out to be an immediate floor.
After Friday’s throwback, the Nifty Bank index picked up momentum on the upside on Monday. The appearance of a bullish candle with a close above the previous session’s high indicates an immediate floor near 35,000. Out of 12 components, seven banking stocks ended in green, indicating a stock-specific rally theme at play within the banking space.
The FMCG index resumed its upward trajectory towards uncharted territory. A positive internal breadth of the FMCG index could attract outperformance from the space.
Recommendations
- Buy Birla Jute & industries near Rs 1,245 for a target of Rs 1,350 with a stop loss at Rs 1,195
The stock is consolidating to digest its previous sharp upmove. However, during the recent decline, the stock defended the level of Rs 1,200. Today, it formed a bullish candle with a relatively large lower shadow, and a positive follow-up through could mean resumption of the prevailing uptrend.
- Buy near Rs 1,300 for a target of Rs 1,400 with a stop loss at Rs 1,250
In the previous week, the stock witnessed a positive breakout through the consolidation phase, and a throwback thereafter to revisit the support zone. Sustenance above Rs 1,300 could lift the stock towards Rs 1,400.
(Amit Trivedi, CMT, is Technical Analyst – Institutional Equities at YES Securities)
