Post two days’ decline, the Nifty jumped 1.7%. After opening on a positive note, it traded in the green throughout the session, reclaiming levels of 14,500. Today’s price action took the form of a large bullish candle. Higher price volatility moves are likely to stay here and the Nifty could consolidate between the 14,650-14,300 zone from a near-term perspective.
The Bank Nifty recouped prior session’s losses. Follow-up action needs to be closely watched as sustenance above 32,500 is essential to make an attempt till 33,000.
All the sectoral indices ended in the green. The Realty index stood out strongly, posting gains of 4%. Bulls regained momentum in the metals space after an 8.5% decline from the recent peak. Stock-specific rally within metal, midcap and smallcap space is likely to continue.
Buy REC Ltd near Rs 146
- Stop loss: Rs 142
- Target: Rs 156
- Levels of 21-day EMA are acting as a support zone for the past few months. Swift reversal from the support zone with multi-month highest closing ensures a shift of range on the upside.
Buy LIC Housing Finance between Rs 425-421
- Stop loss: Rs 407
- Target: Rs 453
- A 12% decline from the recent high found renewed buying interest near Rs 410 zone. Positive follow through to today’s large bullish candle could lift the stock towards Rs 453 zone.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.)