Following a volatile week, Nifty commenced this week on a gap up note above the 15,850 level. However, the Nifty thereafter traded in a narrow trading band of 58 points. This is Nifty’s lowest daily range since 21 August 2020. Like previous week, Nifty again is approaching its upper band of the ongoing trading band. A decisive breakthrough with sustained movement above 15,900-15,950 is essential to gain the required momentum on the upside.
Nifty breadth and sectoral breadth was positive. However, positive follow-up action is required.
On the sectoral front, after a few days of consolidation, bulls regained momentum in the realty space. The index rallied ~5 per cent, outperforming the most. Sustenance could continue the ongoing upward trajectory.
Holding support for the 50-day average, the Infrastructure index is bouncing off its support zone. Stock-specific rally within this space is likely to continue.
Textile and oil & gas stocks saw positive traction; mild upside is possible from a near-term perspective.
Recommendations
Buy near Rs 272-270
- Stop loss: Rs 263
- Target: Rs 285
After losing 16 per cent from the June month’s peak, bulls outstripped bears, forming a large bullish candle. Positive action could lift the stock towards Rs 285 zone
Buy 160 August call option near 4
Forming another bullish candle, the stock managed to surpass the hurdle near 154. Shifting range higher, further upside move is possible till Rs 170 zone.
(Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.)
