Headline equity index Nifty traded in the positive throughout the session on Budget Day as an intraday decline remained short lived. Eventually, Nifty settled at 14,281, up 4.7 per cent. The appearance of a large bullish candle recouped more than 60 per cent of the recent decline. The index is likely to hold its crucial support zone near 13,700-13,650 in the near term. Mild consolidation or minor pullbacks might be there but the ongoing rally could continue till 14,400-14,500.
Nifty breadth was positive as 45 out of Nifty50 components ended in the green, while all sectoral indices ended positive, baring the pharma index.
Bank Nifty outperformed significantly, gaining 8.3 per cent in a single day. Defending the levels of 31,000, it surpassed the recent high of 32,842. Higher price volatility in Bank Nifty is likely to stay here.
Stock recommendation for Tuesday
Buy near Rs 214-212
- Stop loss: Rs 206
- Target price: Rs 227
- Recent decline found renewed buying interest near its 50-day EMA. Swift reversal from the support zone could mean resumption of uptrend.
Buy near Rs 175-173
- Stop loss: Rs 167
- Target price: Rs 190
- The series of ascending tops and bottoms remains intact. Long-legged bullish candle ensured the influence of support at play. On the higher side, it might revisit previous year’s high near Rs 195.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.)