Following a volatile truncated week, Nifty turned lackluster in today’s trade. Post flat start, it swung between positive and negative territory throughout the session. Nifty failed to move beyond prior session’s high and low, thereby forming an inside bar chart pattern. This pattern at current juncture indicates indecisiveness, and hence, further consolidation is possible.
Nifty breadth remained flat, suggesting continuation of stock-specific action. Bulls regained momentum in cement stocks, while IT index continued to trend higher.
Internal breadth of the metal space turned mildly positive. However, a decisive breakthrough above recent hurdle levels in the metal index is required to regain momentum on the upside.
Select chemical specialities and auto ancillaries stocks saw positive traction, while auto index remained under pressure.
Meanwhile, the Bank Nifty saw volatile moves in opening trades. However, price volatility gradually subsided through the rest of the session before settling on a negative note. Stability with sustained moves above 35,000 is required to gain some positive traction.
Recommendations
Buy near Rs 630-635
- Stop loss: Rs 605
- Target: Rs 700
With sustained move above short-term averages, the series of ascending tops and bottoms is intact. Recent swift reversal from the support zone ensures shift of range on the upside.
Buy near Rs 332
- Stop loss: Rs 318
- Target: Rs 370
After losing 14 per cent from the prior month’s high, the stock found renewed buying interest near its 50-day average. Recovery thereafter was swift. Hence, positive follow-up action could lift the stock towards the Rs 370 zone.
(Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.)
