Amit Trivedi, YES Securities
For the third straight session, Nifty opened on a positive note but erased early gains. In today’s trade, it opened above 17,900. However, inability to sustain above 17,900 dragged the index lower; momentum on the downside picked up as it sustained below 17800 followed by 17700 and it fell to 17,576 before settling at 17,749 – down 107 points.
Nifty filled its upward gap at 17,610 which it formed on September 23. However, swift recovery in the last one hour indicates that Nifty might consolidate in the 17,550 -17,900 zone. Higher price volatility is likely to continue as India VIX ended above levels of 18, being up for the fourth session consecutively.
Bank Nifty erased the prior two session’s gains. It witnessed huge swings on both sides; follow-up action needs to be closely watched as sustenance above 38,000 is essential to regain momentum on the upside.
Nifty Energy index continued to trend up to its all-time high zone. Positive internal breadth infers further upside possibilities.
Auto index snapped four sessions winning streak, while IT index ended in red.
| Buy | near Rs 235-233
Stop loss: Rs 224
Target: Rs 255
Recent swift up move ensures the shift of range on the upside. Minor consolidation might be there, but sustenance above 230 could eventually lift the stock towards 255 zone
(The author, Amit Trivedi, is CMT, Technical Analyst – Institutional Equities, YES Securities. The views are his own)