Following Tuesday’s throwback, Nifty50 failed to surpass the 18000-level in Wednesday’s trade. Erasing early gains, Nifty entered negative territory. After marking the day’s low at 17758, Nifty50 eventually ended at 17829, down 0.33 per cent. Breadth was mildly negative as 28 out of the Nifty’s 50 stocks settled in the red. Another negative close ensures immediate hurdles for Nifty near 18000-18050 levels, while sustenance above the 50-day average (i.e. 17650) is likely to attract consolidation action between 17650-18050 levels.
Erasing the prior session’s gain, Bank Nifty failed to sustain above the 40000-level as the index revisits levels of 38305 on the downside. Mixed activity is possible within the banking space, Nifty PSU Bank index rose for the straight sixth week.
The infrastructure index is holding ground, sustenance is likely to attract stocks-specific rally within this space.
Recommendations
Buy
India Cement near Rs 211-209
Stop loss: Rs 204
Target: Rs 233
After losing 17 per cent from the September month high, the stock has defended 50 and 100-day average levels. Gradual recovery in the recent past ensures a shift of range on the upside.
Buy
near Rs 203-201
Stop loss: Rs 195
Target: Rs 217
Swift decline in the prior week found renewed buying interest near Rs 180 zone. Tuesday’s sizable bullish candle indicates an immediate floor near Rs 198 and sustenance above for the same could lift the stock towards Rs 220 level.
(The author Amit Trivedi, CMT is Technical Analyst – Institutional Equities at YES Securities. Views are his own.)
