Amit Trivedi, YES Securities
Following Friday’s swift throwback, Nifty commended this week with a downward gap. However, defending levels of 17,400, the index soon recovered to register day’s high at 17,623 in the positive territory. But, Nifty again failed to sustain above 17,600 and eventually broke below 17,400 to settle at 17,397, down 188 points. Appearance of bearish candle with higher shadow after Friday’s bearish candle indicates profit taking on intraday rallies. Also, formation of lower highs and lower lows indicate immediate hurdles near the 1700-17800 zone. On the flipside, it might revisit levels of 17330-17260.
After taking a pause in previous trade, bulls regained momentum in the FMCG index. Positive internal breadth of the FMCG index indicates more upside potential.
Intraday rally in the IT index remained short lived as it failed to surpass Friday’s peak. Negative follow-up action could attract some consolidation.
Meanwhile, post a gap down start, Bank Nifty traded in the negative territory throughout the session. Within the banking space, all components of the Bank Nifty ended in the red. Negative follow-up action could drag the Bank Nifty towards the 36800-36600 zone.
September futures near 705-710
Stop loss: 733
Recent recovery found resistance near the hurdle zone. Swift decline thereafter indicates influence of resistance at play. Break below the prior month’s low is likely to continue the ongoing decline.
September futures near 1430-1440
Stop loss: 1485
Post multi month up move, the stock is going through the corrective phase. Appearance of multiple bearish candles could limit the upside, while on the flipside, it might revisit prior month’s lower levels.
(Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.)Internet Explorer Channel Network