The Nifty remained choppy following Tuesday’s swift rally as it failed to provide any positive follow through in today’s trade. Post a negative start, the Nifty traded beneath 14,800 mark throughout the session, eventually forming an inside bar chart pattern and ending at 14,691, down 154 points.
Inability to surpass prior week’s high dragged the index lower. Consolidation within a band of 14,500-14,950 is likely. Sectoral trend turned mixed and the ideal strategy to follow remains to be more sector or stock specific.
FMCG index continued to outperform. Sustenance above 35,000 could unlock further potential on the upside.
Meanwhile, Bank Nifty lost 1.7%, thereby underperforming the benchmark index. Some amount of stability is required to regain some momentum on the upside. However, within the banking space, PSU Bank index rose 1.4%. Positive follow-up action could attract buying interest in select public banking stocks.
Recovery in the auto index remained short lived. Sustenance below 10,200 in the auto index could continue an on-going corrective phase.
Recommendations
Buy near Rs 72
Stop loss: Rs 68
Target: Rs 80
Post 32% decline off the February month, the stock is gradually gaining positive traction. Positive follow through could lift the stock till Rs 80 zone
Sell Granules April future near Rs 307-308
Stop loss: Rs 317
Target: Rs 287
Forming a series of lower highs, recoveries in the recent past remained short lived. Negative follow-up action could continue ongoing corrective decline.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
