Nifty50 made a gap-up start to the week after taking a pause in the previous week. Its high-low range was confined to 84 points. However, the undertone of the market was positive as it retained opening levels. Moreover, 36 out of Nifty50 constituents ended in positive territory. Also, all sectoral indices ended on a positive note except the IT and pharma gauges.
Sustenance at current levels could lift the index towards the upper band of its recent range of 15,600-15,900. However, any decisive breakthrough above 15,900 could unlock further upside potential.
Nifty Bank gained over a per cent. The appearance of a bullish candle with a close near the day’s high is likely to attract bullish momentum. Immediate floor for BankNifty is seen near 34,800. On the higher side, the index might revisit 35,500-35,600 levels.
After a multi-week decline, mild recovery is visible in the energy index with 80 per cent of its components ending higher.
Stock recommendations
- Buy GSFC near Rs 116 for a target of Rs 123 with a stop loss at Rs 113
With a sustained move above its short-term averages, an intraday decline found renewed buying interest. Sustenance above Rs 115 could lift the stock towards its June high.
- Buy Greaves near Rs 173 for a target of Rs 183 with a stop loss at Rs 168
A swift reversal from the support zone ensures a shift of band on the upside. The stock has resumed its northbound journey towards uncharted territory.
(Amit Trivedi, CMT, is Technical Analyst-Institutional Equities at YES Securities)
