After gaining 8.7 per cent in the August month, Nifty continued its upward trajectory for the consecutive fifth month. In today’s trade, Nifty opened with an upward gap. However, after marking a record high of 17,430, it trimmed some of the early gains and traded in a narrow trading band of 84 points. Eventually, the Nifty managed to form consecutive sixth higher highs and higher lows.
Bank Nifty continued to lack required momentum on the upside. Intraday rally remained short lived as it failed to surpass levels of 37,000. Bank Nifty formed another bearish candle; sustenance below 37,000 could attract further consolidation.
Auto index rebounded ~5 per cent from prior month’s low. The index is now approaching its 50-day average. Hence, sustenance above 10,250 is required to unlock further upside potential.
Meanwhile, after the recent swift rally, mild throwback is visible in the energy index; though the index managed to provide positive close for the straight tenth session.
Recommendations
Buy
Ramco Cement near Rs 1,040
Stop loss: Rs 1,010
Target: Rs 1,110
Swift reversal ensures resumption of uptrend; sustenance above 50-day average is likely to keep near-term outlook positive.
Buy
near Rs 1,040
Stop loss: Rs 1,015
Target: Rs 1,100
With sustained move above important averages, the ongoing upward trajectory of the stock is likely to continue.
(Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.)
