Benchmark index Nifty ended the trade lower amidst volatility as bulls failed to push the index beyond the key hurdle of 15,900 levels. Further, going ahead, it is approaching immediate support levels at 15,700-15,650. A sustained trade above these support levels may trigger a short covering rally ahead of the expiry session, taking the index back to levels of 15,830-15,900.
Overall, the index continues to oscillate in a broad range between 15,900-15,600. Moreover, the technical indicator RSI is also oscillating between 30 on the downside and 60 on the upside, which suggests that the market is going through a consolidation phase currently.
Equity recommendation
Graphite: BUY
- CMP: Rs 695
- Target: Rs 750
- Stop loss: Rs 630
The stock has resumed uptrend after breaking out of a narrow consolidation phase and trendline resistance on good volumes. Technical indicator RSI is turning upwards from the 40-level, which suggests extended upside in the stock.
Futures: SELL
- CMP: Rs 201
- Target: Rs 180
- Stop loss: Rs 213
The stock is on the verge of a breakdown from a trendline support, suggesting a weakening uptrend. Further, the RSI has also turned lower below the 40-level, confirming weakness in the stock.
(Aditya Agarwala is Senior Technical Analyst, YES Securities. Views are his own.)
