Market remained volatile in today’s session. Post a positive start, Nifty again failed to sustain above 16,300 and soon entered the negative territory. However, after marking a low of 16,163, Nifty defended levels of 16,200 on a closing basis for the consecutive sixth session and eventually ended on a flat note.
Nifty’s volatile action could continue. However, structure is likely to remain positive as long as levels of 16,100 are decisively held. Nifty breadth was flat, but improved when compared with the first half of the session. Overall, the stock-specific theme is likely to remain intact.
Bank Nifty underperformed, but managed to defend levels of 35,500 on the downside. Stability with sustained moves above 36,000 is required to regain momentum on upside.
Infrastructure index snapped its three-sessions’ losing streak; positive follow-up action could attract stock-specific rally.
After two days of decline, bulls regained momentum in the metals space. Volatile action is possible in metal stocks.
Recommendations
Buy
near Rs 46.55
- Stop loss: Rs 44
- Target: Rs 52
After losing 29 per cent from the June month’s high, the stock is bouncing off its support zone seen near Rs 44. Appearance of a long legged bullish candle could mean that the stock is due for mean reversion; hence, a rally towards Rs 52 is possible.
Buy
near Rs 133.5
- Stop loss: Rs 128
- Target: Rs 145
Recent decline found renewed buying interest near the 20-day average. Swift recovery from lower levels is likely to resume the prevailing uptrend.
(Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.)
