Nifty has risen ~12 per cent from its July month’s low. In the past week, the index formed a sizable bullish candle (gaining 3.7 per cent). In Friday’s trade, Nifty defended the levels of 17200 and later bulls’ again regained momentum on the upside to register a fresh record high at 17340. Eventually, Nifty50 ended near the day’s high.
Nifty’s breadth in Friday’s trade was positive as about 70 per cent of Nifty components ended in the green. On weekly basis, Nifty’s breadth remained flat as 25 out of Nifty50 stocks managed to beat the benchmark returns.
Bank Nifty turned volatile, as it rallied till 37140 but failed to cling on to higher levels. The appearance of a long-legged indecisive candle indicates that sustenance above 37000 is necessary to gain positive traction.
The energy index rallied ~5 per cent this week, a decisive breakthrough above June month’s peak could attract further buying interest.
Recommendations
Buy
J K Tyre near Rs 154-152
Stop loss Rs 145
Target Rs 171
Forming multiple lows near Rs 140, the stock regained momentum on the upside. A sizable bullish candle with comparatively higher volumes could mean resumption of the uptrend.
Buy
near Rs 175
Stop loss Rs 168
Target Rs 190
After losing 22 per cent from the July month’s peak, the stock rebounded from the support zone. In Friday’s trade, the stock witnessed a minor consolidation breakout which could lift the scrip towards Rs 190 zone.
(Amit Trivedi, CMT is Technical Analyst – Institutional Equities at YES Securities. Views are his own)
