Nifty remained volatile ahead of the RBI policy outcome tomorrow. Wednesday’s swift decline in Nifty was not followed by a negative follow-up action; it opened above 17,800 but traded within a narrow trading band of 94 points. Nifty formed inside bar chart pattern (i.e, it traded within prior session’s range), also it printed NR7 chart pattern (i.e. narrowest high/low range as compared to prior six sessions range). These patterns infer indecisiveness ahead of the RBI policy outcome. Follow-up action needs to be closely watched out as sustenance at higher bands is required to resume its northbound journey in uncharted territory.
Bank Nifty opened above the prior session’s mid-point. It, however, failed to surpass the 38,000 mark. An intraday rally in the Metal index found stiff resistance near 5700. It consolidated near the lower band of the Wednesday bearish candle’s range.
Recommendations
| Buy | Rs 442-438
Stop loss: Rs 423
Target: Rs 480
Forming a series of ascending tops and bottoms,the stock is gradually trending up since the past few months. Sustenance above short-term averages is likely to keep the near term outlook positive.
Indiabull Real Estate | Buy | Rs 148-150
Stop loss: Rs 142
Target: Rs 170
After losing 28 per cent from the July month’s high, the stock regained momentum in the recent past. Sustenance is likely to unlock further upside potential.
(The author, Amit Trivedi, CMT, is Technical Analyst – Institutional Equities, YES Securities. The views are his own.)
