Post Friday’s narrow range trade, volatility picked up in today’s session. The Nifty sharply corrected towards 15,607 in the first half. However, it recouped early losses to settle above the 15,800 mark. On the very first day of the week, Nifty formed a large lower shadow. It represents renewed buying interest on intraday decline. Sustenance above 15,800 could lift the Nifty towards 15,880-15,970 levels.
Bank Nifty lost 4% from the recent peak. After a negative start, it fell to 34,374 in today’s trade. However, swift recovery from the lower zone ensured immediate support near 34,400, while sustenance above 35,000 could attract some positive momentum towards the 35,500 zone.
IT index is holding ground at the uncharted zone; stocks specific rally within this space is likely to continue.
FMCG index swiftly recovered from lower levels and positive follow-up action could mean further upside potential.
Recommendations
Buy Grasim near Rs 1,490
Stop loss: Rs 1,460
Target: Rs 1,550
With sustained move above important averages, the stock rebounded from the support zone. Positive follow up action could resume its journey towards uncharted territory.
Buy near Rs 429
Stop loss: Rs 418
Target: Rs 455
Recent corrective phase seems to be in a mature phase. Sustenance above Rs 430 could lift the stock above Rs 450 zone.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
