Post gap-up start, the Nifty witnessed mild pullback towards 15,075. However, on sustenance above 15,100, the bulls outstripped the bears and eventually the Nifty ended at 15,097, up 115 points. Throughout the session, the Nifty traded between 111 points, thereby forming NR7 bar chart pattern (i.e. narrowest high/low range when compared with prior six sessions’ range).
After taking a pause in the January series, the Nifty rose 9.3% in the February derivative series. In today’s trade, the Nifty traded beneath morning high of 15,171. Hence, follow-up action needs to be closely watched as sustenance above 15,100 is essential for regaining momentum on the upside.
Equity recommendations
Buy near Rs 1,650-1,640
Stop loss: Rs 1,590
Target: Rs 1,750
Post 15% decline from the recent high, the stock rebounded from the support zone. Positive follow-up action could lift the stock till the Rs 1,750 zone.
Buy Orient Cement near Rs 94-93
Stop loss: Rs 88
Target: Rs 105
With sustained move above short-term averages, a series of ascending tops and bottoms are intact. Positive follow up action could resume prevailing uptrend.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
