Following the prior week’s narrow range trade, Nifty opened flat and soon corrected till 17,269. However, it recouped early losses and eventually ended on a flat note. Appearance of another indecisive candle indicates continuation of recent timewise consolidation. Moreover, the immediate trading band of 17,200-17,450 remains intact.
IT index outperformed, gaining over a percent. Most of the IT index components ended in the green. Internal positive breadth suggests stock-specific rally within this space could continue.
Positive traction is visible in select chemical speciality stocks; positive follow-up action could continue the recent rally.
Meanwhile, Bank Nifty ended lower for the consecutive session. Intraday recoveries remained short lived. However, the immediate trading band of 36,200-37,000 remains intact.
Recommendations
Buy
near Rs 288
Stop loss: Rs 278
Target: Rs 310
With sustained moves above important averages, the stock has regained momentum on upside and is on a verge to break above the hurdle zone.
Sell
September future near Rs 547
Stop loss: Rs 556
Target: Rs 525
Recent rally found resistance near Rs 560 level. Throwback thereafter is likely to drag the stock towards Rs 525 zone.
(Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.)
