Forming descending high and low, Nifty ended lower for the consecutive week. During the week, it had rallied till 14,879 initially. However, a sudden change in sentiment dragged the index as low as 14,264 before settling at 14,507. Post two days’ decline, in Friday’s trade, Nifty recovered and formed an indecisive candle. Follow-up action after such indecisive formation needs to be closely watched as sustenance above 14500 is essential for triggering any minor bounce back action.
Bank Nifty lost 2.5% on weekly close. Post a gap up start, in Friday’s trade, Bank Nifty traded beneath the morning peak throughout the session. Sustenance above 33,500 is required for any revival to set in.
Bulls regained momentum in FMCG space. The index rebounded from its support zone and positive follow-up action could attract outperformance from the FMCG space.
Recommendations
Buy UBL near Rs 1,230-1,225
Stop loss: Rs 1195
Target: Rs 1290
Post 13% decline in the prior month, the stock is gradually gaining positive traction. Positive follow-up through could lift the stock till 1300 zone.
Sell Kotak Bank April future near Rs 1800-1810
Stop loss: Rs 1,845
Target: Rs 1,725
Forming a series of lower highs, recoveries during the week remained short lived. Negative follow-up action could continue on the on-going corrective decline.
