Nifty commenced the truncated week gone by with a downward gap, erasing the prior week’s gains. However, after marking a weekly low at 15,579, bulls managed to regain momentum as Nifty sustained above the 15,600-mark. The benchmark index rallied in the last two sessions of the week, managing to settle at 15,856, down 0.4 per cent on the weekly close.
Nifty is attempting to revisit the upper band of the recent trading range (i.e. 15,600-15,900). A decisive breakthrough with a sustained move above 15,900 is necessary to resume its journey to uncharted territory.
Bank Nifty turned volatile and has underperformed in the past week (down 2 per cent on weekly close). Bank Nifty’s ongoing higher price volatility is likely to continue, as sustenance above 35,000 is important to gain some momentum on the upside.
Recommendations:
Buy near 1970
- Stop loss: 1940
- Target: 2040
After losing 12 per cent from the record high, the stock is bouncing off the support zone. Sustenance at current levels could attract buying momentum.
Buy near 1040
- Stop loss: 1005
- Target: 1110
Multiple month consolidation seems to be at its mature phase as the stock took support near its half-yearly mean. A positive follow-up action could lift the stock towards 1110.
(Amit Trivedi, CMT, Technical Analyst – Institutional Equities at YES Securities)
