Continuing the bullish move from last week, Nifty topped 18,000 in today’s trade. After posting a record 18,042, however, Nifty faced slight profit taking before settling at 17,946, up 51 points. Following Friday’s narrow range trade, Nifty gained positive momentum. However, the flashback eventually took the form of a bullish candle with an identical top shadow. Nifty’s width was slightly positive with 66% of its components settling in green. By moving the base higher, the 17,800-17,750 levels could prove to be of immediate support. Last month Nifty experienced a slight correction as it failed to maintain above the 17,950 area. Therefore, even in the future, sustenance above 17,950 is required to achieve the momentum required to rise. India VIX recovered from levels of 16. Slightly higher price volatility cannot be ruled out.
Bank Nifty formed a major bullish candle. Subsistence is likely to unleash further upside potential in uncharted territory. In the banking space, public banks did not have the required upward momentum, the PSU banking index formed an indecisive candle. Maintaining above the 2,580 level is important to continue the recent uptrend.
After losing 4.5% from the recent high, the FMCG index has gained popularity. Subsistence is likely to provide buying opportunities in selected FMCG stocks.
| Buy at Rs 235-236
Stop loss: Rs 227
Target: Rs 250
After witnessing a 6% correction from a previous month’s high, the stock regained buying interest close to its 20-day average. Subsistence could push the stock up to the Rs 250 zone.
| Buy 145 strike call options close to 4
Stop loss: 1.4
The title defends its levels for 20 days on average. A positive follow-up to today’s bullish candle could attract positive momentum.
(The author, Amit Trivedi, CMT, is Technical Analyst – Institutional Equities, YES Securities. The opinions are his)