Following Monday’s throwback from 18,210, Nifty erased gains even in today’s trade. The intraday recovery failed to sustain above the 18,100 mark and eventually, the index fell to 17,959. Forming a bearish candle, it finally settled near the 18,000 mark.
On the weekly options front, significant open interest additions are visible at 18,100 call while on the flip side, 18,000 strike put still holds the maximum OI base. It represents that traders are not expecting any major action on either side.
Meanwhile, breaking below the previous week’s low, Bank Nifty made a low at 38,211. Bank Nifty revisits its 50-day average (this average levels were intact since late Aug 2021). Sustenance at current levels is necessary for any recovery to kick in till 39,000.
Recommendations
Buy Hind Zinc near Rs 326
Stop loss: Rs 317
Target: Rs 340
After losing 24 per cent from the recent high, the stock is gaining positive traction. The sustenance could mean a shift of range on the upside.
Sell Divis lab Nov future near Rs 4,890
Stop loss: Rs 4,995
Target: Rs 4,680
Post a multi-month rally, the stock is going through a corrective phase. Negative follow-up action could result in the continuation of recent decline.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities at YES Securities. Views expressed are personal.
