The Nifty50 index inched higher to register a record high of 15,800 mark on Wednesday, a day after recovering from lower levels. However, the index’s inability to sustain at higher levels pulled it sharply lower to 15,567. Nifty50 engulfed the range seen in the previous four sessions, but managed to protect the 15,600 mark on a closing basis. Mild consolidation within the range of 15,550-15,750 is plausible.
A mild throwback from the record high is visible in the Nifty IT index, while the Nifty Auto barometer has snapped a three-session winning streak. Bank Nifty has lost around 1,200 points from its recent high. A mild recovery is possible in Bank Nifty towards the 35,200-35,500 zone.
Stock recommendation
- Buy GSFC near Rs 116.50 for a target of Rs 127 with a stop loss at Rs 112
After losing 18 per cent from the previous month’s high, the stock has swiftly rebounded from its support zone. The appearance of a bullish candle at the current juncture could mean resumption of an uptrend.
With a sustained move above important averages, the stock has managed to surpass its recent high. Shifting its range higher, the stock could revisit the March month high near Rs 340-350.
(Amit Trivedi, CMT, is Technical Analyst-Institutional Equities at YES Securities)
