Continuing last session’s recovery, headline equity index Nifty opened on a gap up note above 15,200 on Wednesday. However, its inability to surpass prior week’s high dragged the index lower. Nifty erased most of Wednesday’s early gains to make a low at 15,101. Moreover, it traded between a narrow trading band of 118 points which is the lowest when compared with the prior six sessions’ range. A decisive breakthrough above previous week’s high (i.e. 15,273) is essential to make an attempt towards the uncharted zone, failure to do so (i.e. sustenance below 15,270) could continue the ongoing consolidation with support placed near 14,900.
Nifty Bank lacked required momentum on the upside, erasing early gains yet again. It failed to provide a close above 36,000. The ongoing consolidation of Nifty Bank is likely to continue.
Recommendations
Buy DLF near Rs 313-311
- Stop loss: Rs 304
- Target price: Rs 330
- Series of ascending tops and bottoms remains intact for the stock. The levels of its 20-day EMA could turn out as an immediate support zone.
Sell Bata India March futures near Rs 1,520
- Stop loss: Rs 1,555
- Target price: Rs 1,450
- Bata India’s recent rally has found stiff resistance near Rs 1,540-1,550 zone. The recent decline could continue if the stock fails to sustain at current levels.
(Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own)
