The appearance of bearish candle at the current juncture indicates indecisiveness near the point of polarity zone (i.e. during late October ’21, Nifty found support near 17,600). Hence follow-up action needs to be closely watched as sustenance below 17,600 could attract some consolidation.
Meanwhile, Bank Nifty outperformed in today’s trade. It, however, failed to surpass the 38,000 level. After marking a high at 37,891, Bank Nifty trimmed most of the early losses to settle at 37442 – up 169 points. Immediate trading band for Bank Nifty is seen in the 37,000-38,000 zone.
Mixed activity was seen among sectoral indices. Intraday rally in the IT index remained short lived. Stock-specific correction within this space is possible. The Media index outperformed the most.
India VIX managed to settle above levels of 17. Moreover, due to expiry of the November derivative contracts – higher price volatility is expected to continue.
Recommendations
Chambal Fertilizers | Buy near Rs 377-375
Stop loss: Rs 365
Target price: Rs 400
With sustained move above the 50-day average, the stock has formed multiple bullish candles. Positive follow-up action above 380 could lift the stock till the 400 zone.
| Sell December future near Rs 725-730
Stop loss: Rs 745
Target price: Rs 680
A swift sell-off in the recent past has broken various support levels. Intraday recovery remained short lived, finding stiff resistance near Rs 735, which ensured influence of resistance at play. Negative follow-up could drag the stock below the Rs 700 zone.
(The author, Amit Trivedi, is CMT, Technical Analyst – Institutional Equities, Yes Securities. The views are his own.)
