Nifty gained for the third straight session. Though Nifty fell in the morning trade, it defended prior session’s low and went up to register day’s high of 15,877. It then erased some gains and eventually ended at 15,854, up 42 points. Nifty is approaching its upper band of the recent range. The sooner it reclaims or sustains the 15900 mark, the better. If not, more choppiness is to be expected.
Nifty breadth was flat and sectoral trends were mixed. Stock-specific action is likely to remain high amid the earnings season.
After a multi-week decline, IT stocks mustered gains. The IT index formed a sizable bullish candle; positive follow through could continue the ongoing upward journey at uncharted territory.
Bulls took a pause in the realty stocks; this space may experience some consolidation to digest recent gains.
Recommendations
Buy near Rs 1,645-1,649
Stop loss: Rs 1,605
Target: Rs 1,740
Series of ascending tops and bottoms remain intact. Positive follow through could mean resumption of uptrend
Sell July futures near Rs 1,720
Stop loss: Rs 1,752
Target: Rs 1,655
Recovery in the recent past remained short lived. The stock is digesting its multi-month up move; hence, it might revisit levels of Rs 1,650 on the downside.
(Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.)
