Nifty turned choppy after Tuesday’s narrow range trade. Post a negative start, it recouped early losses, but failed to surpass prior session’s high. Appearance of a bearish candle with relatively large upper shadow indicates mild profit taking at higher levels. After rallying 3.7 per cent from the prior week’s low, Nifty is likely to digest this week’s gains. On the flipside, the Nifty might revisit levels of 14,950-14,920 zone.
After showing strong positive momentum in Monday’s trade, Bank Nifty has failed to provide a close above the 34,000-mark. Follow-up action needs to be closely watched out as decisive breakthrough above prior month’s high (i.e. 34,300) is essential to regain momentum on the upside.
Meanwhile, the metal index formed a bearish candle with lower high and lower low. Prior week’s large bearish candles are stalling intraday rallies in the metal space; negative follow-up action could attract some price correction.
Recommendations
Sell May Future near Rs 710-715
Stop loss: Rs 740
Target: Rs 650
Post prior week’s swift decline, recovery in the stock found stiff resistance near Rs 730 zone. Negative follow-up action could drag the stock towards Rs 650.
Sell HeroMotoCorp May Future near Rs 2,930
Stop loss: Rs 2,980
Target: Rs 2,830
After a multi-month decline, the recoveries in the stock remained short lived. Sustenance below Rs 3,000 is likely to keep near-term outlook negative.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
