Continuing Thursday’s decline, a recovery in Friday’s trade remained short-lived finding stiff resistance near the 15,100 zone. After a negative start below the 15,000 mark, Nifty recouped early losses, however, the inability to build on gains at higher levels pulled the benchmark index lower again. On a weekly basis, Nifty gained 2.6 per cent, nevertheless, the appearance of a large upper shadow on the weekly candle represents profit-taking at higher levels. Nifty breadth remained negative. Moreover, all the sectoral indices ended in the red, suggesting profit-taking across the board. Levels of 14,150-14,200 could turn out as an immediate hurdle for Nifty, while on the flipside, it might revisit the 14,750-14,700 levels.
BankNifty resumed its underperformance, losing around 2 per cent on Friday. Levels of 36,000 will continue to act as immediate resistance, whereas a negative follow-up could attract further price correction till the 34,500 zone. Meanwhile, the infrastructure index is relatively holding ground, hence any positive follow-up could continue its recent outperformance.
Equity recommendations
- Sell Glenmark March futures near Rs 471-472
Stop loss: Rs 482
Target: Rs 451
Recovery during the week found stiff resistance near the 480 zone. Sustenance below short-term averages could keep near term outlook negative.
- Sell DrReddy’s March futures near Rs 4,520-4,530
Stop loss: Rs 4,690
Target: Rs 4,150
The stock is going through a corrective phase. Inability to surpass the levels of Rs 4,600 stalled the recent rally.
