Nifty rallied for the straight sixth session, in Friday’s trade Nifty opened on a gap up note above 15,400 mark and traded in positive territory throughout the session. Surpassing Feb months high, Nifty also registered a new record high at 15,470. However, Nifty traded within a narrow trending band of 75 points which is the lowest daily trading range since 10th May.
Moreover, Nifty’s breadth was unimpressive as about half of Nifty50 components ended in red, it represents stock specific action at play. Shifting the base higher, now levels of 15,250 could turn out as immediate floor, while on the higher side on-going rally could continue till 15,600 level.
BankNifty remained choppy in Friday’s trade, it erased early gains. However, on a closing basis it managed to settle above 35,000. Sustenance above 35,000 could lift the BankNifty towards 35,500-35,800 zone.
Recommendations:
Buy near Rs 144
- Stop loss: Rs 140
- Target: Rs 155
Positive breakthrough in the recent consolidation phase could mean resumption of the prevailing uptrend.
Buy near Rs 252
- Stop loss: Rs 242
- Target: Rs 272
Sustained move above important averages is likely to keep outlook positive, sustenance above 250 could unlock further upside potential.
(Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.)
