Nifty commenced the truncated week on gap down note near 14,300 and swung between 14,150 and 14,500 zone throughout the week. Nifty lost 1.9% this week and ~8% from the record peak. However, this week Nifty witnessed mild recovery from 14150 zone. In the coming week, sustenance above 14200 is essential to digest recent decline. Immediate trading band for Nifty is seen between 14200-14500 zone.
Nifty-breadth was mildly negative, while sectoral trend turned mixed. BankNifty formed multiple lows near 30500; mild recovery thereafter on BankNifty standalone chart and reversal on the ratio chart of BankNifty vs Nifty indicates possible outperformance of the BankNifty from a near term perspective.
Theme of the week was stocks specific as about half of Nifty50 components managed to outperform the benchmark index on weekly returns, this on-going stock specific theme is likely continue in the coming week.
Recommendations
Buy L&TFH near Rs 90
Stop loss: Rs 87
Target: Rs96
After losing 24% from the march peak, however, the stock has defended important support of 84.5. Recent congestion phase seems to be in a mature phase and sustenance above levels 91 could attract mild recovery towards 96 zone.
Buy NMDC near Rs 138
Stop loss: Rs 132
Target: Rs 150
Sustained move above important averages and series of ascending tops and bottoms is likely to keep near term outlook positive. Sustenance above current levels could resume prevailing uptrend.
