Amit Trivedi, YES Securities
Nifty swung between positive and negative territory throughout the session. After a negative start, Nifty traded within its prior session’s range, thereby lacking the required momentum on either side.
The appearance of the NR7 bar chart pattern (i.e. narrowest high/low daily range as compared to its prior six sessions’ range) indicates indecisiveness.
Sustenance above 16420 (i.e. upward gapping area) is likely to attract mild consolidation. However, momentum on the upside will pick up only if it breaks through above the 16,800 zone.
Intraday recoveries in the Bank Nifty found stiff resistance near the mid-point of its prior session’s range, also the index made lower lows – suggesting the influence of resistance at play.
On the sectoral front, sideways consolidation is visible in the IT index, whereas the metal index is holding ground. FMCG continued its recent recovery, while the pharma index rallied over 2%. Stocks specific rally within FMCG and Pharma is plausible.
Buy Pricol Ltd near Rs 115
Stop loss: Rs 107
Target: Rs 132
After losing ~28% from the Jan month’s high, the stock has regained momentum on the upside. Sustenance above important averages is likely to keep near term structure positive.
Buy Tata Consumer Products near Rs 710-700
Stop loss: Rs 675
Target: Rs 770
Post-multi-month decline, recent swift recovery ensures immediate support near 680-690. Sustenance at current levels is likely to unlock upside potential till 770.
(The author is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own)