Post Tuesday throwback, the Nifty moved volatile in today’s trade. Continuing its previous session’s decline, it fell till 14,977. However, late recovery recouped early losses and Nifty reclaimed levels of 15100 eventually Nifty ending on a flat note and forming a Doji candle with relatively large lower shadow. Two-sided movement in the past couple days indicates an immediate trading band of 15,000-15,250 zones.
Meanwhile, the Bank Nifty underperformed, snapping its nine sessions’ winning streak. The Bank Nifty is likely to consolidate above levels of 35,000.
Nifty breadth turned flat. Also, mixed activity is seen among sectoral indices. The Realty index is relatively holding ground, whereas the FMCG index remained weak for the straight third session.
Equity recommendation
Buy near Rs 310
Stop loss: Rs 296
Target: Rs 340
With sustained move above short-term averages, the stock is holding ground above Rs 305. Positive follow-up action could unlock further upside potential.
Derivative recommendation
Sell Kotak Bank February future near 1,970
Stop loss: 2,030
Target: 1,850
Recent swift rallies stalled near levels of 2030. Sustenance below multiple peaks (i.e. 2025) could attract mild retracement towards support levels.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
