After four days of straight fall, Nifty commenced this week on a positive note, however, its inability to sustain at higher levels stalled intraday rallies. On forming identical open and high, Nifty erased early gains and eventually ended on a flat note. The index revisited its 20-day EMA levels, which are intact on closing since August 2021. Nifty’s breadth remained negative as 39 out of 50 stocks settled in the red. Barring banking and financials, most of the other indices faced downticks. Sustenance above 18,000 is necessary for some consolidation to set in between 18,000-18,300 zone. Any decisive breakthrough below 18,000 could extend the recent decline towards the 17,850 level.
Bank Nifty ended a volatile session on a positive note for the third straight day. The index rallied till 41,830 only to settle near 41,192. Technically, Bank Nifty formed a long-legged small-bodied candle and follow-up action needs to be closely watched out as sustenance below today’s high (i.e. 41830) could attract some consolidation.
Recommendations
Larsen & Toubro 1840 Call November option | Buy near Rs 48-50
Stop loss: Rs 24
Target:
Rs 100
The series of ascending tops and bottoms remain intact, while the immediate support is seen near Rs 1,760-1,750 levels. Positive follow-up action could resume the uptrend.
Oct future | Sell near Rs 605
Stop loss: Rs 620
Target: Rs 570
After gaining ~28 per cent from the August lows, mild profit-taking is visible on the counter. Sustenance below Rs 600 could mean that the stock is due for some price retracement.
(The author, Amit Trivedi, CMT, is Technical Analyst – Institutional Equities, YES Securities. The views are his own)
