Last week’s rally in Nifty stalled near the 15,250 zone and since then the index is struggling to sustain above 15,100. After two days of decline, Nifty commenced this truncated week on a positive note. However, after marking the day’s high of 15,111, it failed to cling on to higher levels and eventually erased early gains to end at 14,956. The appearance of another upper shadow on the chart represents profit taking at higher levels. Hence, any sustenance below 15,000 could drag Nifty lower till 14,850-14,800 zone.
Bank Nifty traded choppy on Monday. The intraday rally remained short lived, finding stiff resistance near 35,800. A decisive breakthrough above 36,000 is essential for gaining some momentum on the upside.
Stock Recommendations:
Sell Torrent Pharma March Futures near Rs 2,500
Stop loss: Rs 2,580
Target price: Rs 2,360
Post a multi-week decline, the stock is consolidating at the lower band. Recovery in the recent past remained short lived, finding stiff resistance near Rs 2,530. Sustenance below Rs 2,500 could drag the stock lower to revisit levels of Rs 2,360.
Sell March Futures near Rs 3,825
Stop loss: Rs 2,580
Target price: Rs 2,360
In the previous month, the stock broke various support levels. Recovery remained short lived thereafter. Since the last couple of days, the stock is gradually trending lower. Inability to sustain at current levels could continue the ongoing corrective phase.
(Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.)
