Nifty rallied for the straight fifth month in September with a rise of about 3 per cent. 23 Nifty50 stocks delivered more than 3 per cent return. The undertone of Nifty was negative last week as its inability to cling on to higher levels eventually triggered profit taking. Nifty ended in the negative zone for the fourth consecutive day on Friday. The levels of 17,750-17,800 could act as immediate hurdle, while negative follow-up action is likely to open up further downside projections till 14,400-14,300.
After marking a record high at 38,377, Nifty Bank lost 4 per cent in volatile trade. For the current year so far, Nifty is up by 25 per cent, whereas Nifty Bank is up by 19 per cent; a decisive breakthrough with sustenance above 38,000 is essential to re-gain some positive momentum in the banking index.
Nifty PSU Bank index rose 6 per cent this week. A positive follow-up action could continue its recent revival phase; whereas Nifty IT index lost 6 per cent to digest multi-months gains.
Stock Recommendations
Interglobe Aviation: Sell
Sell Interglobe Aviation October futures near Rs 1,990-1,995
Stop loss: Rs 2,045
Target price: Rs 1,890
Sustenance below Rs 2,000 is likely to drag the stock further lower till Rs 1,880.
Adani Enterprises: Sell
Sell
October futures near Rs 1,470-1,480
Stop loss: Rs 1,520
Target price: Rs 1,390
Recent rally found stiff resistance near Rs 1,550. A decline thereafter ensured influence of resistance at play.
(Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own)
