Market turned choppy ahead of the US Fed policy. Post a negative start, Nifty fell till 15,743 and eventually ended at 15,768, down 102 points. Nifty breadth was negative, suggesting profit taking in select stocks. Nifty faced downticks to digest recent swift gains. However it defended the immediate support of 15,750 on a closing basis. Consolidation at upper band is possible as long as levels of 14,750-14,700 are decisively held.
Intraday rally remained short lived. However, Bank Nifty managed to close above the prior session’s low. Sustenance above 35,000 is essential to regain momentum on the upside.
All the sectoral indices ended in the red, except FMCG and IT index. Broader indices slowed their ascension. However, sustenance above support levels is likely to keep the near-term outlook positive.
Recommendations
Buy near Rs 539
Stop loss: Rs 529
Target: Rs 565
Series of ascending tops and bottoms is intact on short term and medium term charts. During the recent decline, the stock defended levels of Rs 530; mild reversal thereafter could mean resumption uptrend.
Buy near Rs 545
Stop loss: Rs 520
Target: Rs 600
After multi-months corrective phase, bulls have regained momentum on the upside. Sustenance above Rs 840 could lift the stock towards Rs 600 zone.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
