Following Tuesday’s throwback, Nifty fell towards 15,460. However, on account of renewed buying interest, the index recouped early losses. The appearance of a bullish candle with a lower shadow indicates the influence of support at play. A positive follow-up could lift Nifty towards 15,660-15,700. During the session, BankNifty defended 35,000. A stock specific rally within the banking space is likely to continue. Meanwhile, the infrastructure index closed at a multi-year high zone. The outperformance of the infra space could continue. The realty index formed a shaven bottom bullish candle. The index has more room on the upside, hence the uptrend is likely to continue.
Recommendations
- Buy Indoco Remedies near Rs 395 for a target of Rs 430 with a stop loss at Rs 380
Rationale
A series of ascending tops and bottoms along with a sustained move above important averages is likely to keep the near-term outlook positive.
- Buy Raymond near Rs 385-383 for a target of Rs 415 with a stop loss at Rs 370
Rationale
After three days of decline, bulls regained momentum on the upside. The appearance of a large bullish candle on comparatively higher volumes warrants a positive outlook for the stock.
(Amit Trivedi, CMT, is Technical Analyst – Institutional Equities at YES Securities)
