After Friday’s volatile session, the Nifty opened the first day of the week on a negative note near the 15,500 mark. However, defending the prior session’s low, the index regained early losses to settle in positive territory at 15,746, up 63 points. Recoveries from the lower level indicates influence of support at play. However, positive follow through above 15,800 is required to make an attempt towards uncharted territory.
Bank Nifty also witnessed a negative opening, but remained above Friday’s low. Recovering all of the early losses, it eventually ended at 34,871. Swift recovery for the consecutive session ensures immediate support near 34,000. Positive follow up could attract some upside till 35,400-35,500 zone.
On the sectoral front, the Infrastructure index is bouncing off the support zone; any positive follow through could attract positive momentum.
Bulls took a pause for the consecutive session in the IT space. Energy index snapped four sessions’ losing streak; stock specific rally within this space is possible.
Recommendations
Buy near Rs 433
Stop loss: Rs 420
Target: Rs 461
After a recent decline, bulls have regained momentum on the upside. Forming a large bullish candle, the stock has surpassed prior peak levels, shifting range higher. The stock could make an attempt towards the Rs 470 zone.
Buy near Rs 175
Stop loss: Rs 168
Target: Rs 189
Forming a series of ascending tops and bottoms, yet again the stock found renewed buying interest near its 20-day average level. Recovery thereafter could mean resumption of uptrend.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
