Following a few days’ sideways consolidation, Nifty reclaimed the 17,500 mark. Post a flat start, it traded in the positive territory throughout the session. Nifty breadth improved with 70% of its components settling in the green.
Moreover, all the sectoral indices except the media index ended in the positive territory. Appearance of a bullish candle ensures an immediate floor near 17,350. Positive follow through could continue the ongoing journey in uncharted territory.
Media index snapped three sessions’ winning streak; mild consolidation is possible to digest recent swift gains.
Bank Nifty saw mild positive traction. However, positive follow through above 37,000 is essential to gain required momentum on the upside. Within the banking space, PSU Bank index rallied 3%; sustenance above 2,400 is likely to attract outperformance from near-term perspective.
Midcap and smallcap index continued to trend up; stocks-specific rally within broader indices is likely to continue.
Recommendations
Buy
near Rs 204
Stop loss: Rs 195
Target: Rs 223
After breaking through the hurdle zone recently, the stock resumed its upward journey. Appearance of another bullish candle with close above Rs 200 ensures shift of range on the upside.
Buy
near Rs 1,340-1,330
Stop loss: Rs 1,305
Target: Rs 1,400
After a multi-month decline, the stock found renewed buying interest near the support zone. Base building pattern on short term charts indicates that stock is due for mean reversion. Hence, any positive follow-up action could lift the stock towards Rs 1,400 zone.
(Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.)
