Post prior to week’s consolidation, the Nifty resumed its upward trajectory at unknown zone. Nifty opened over 15,250 and traded positively throughout the session. However, Nifty’s high / low range was limited to 97 points, which is the lowest daily interval since 1 January. Despite Nifty’s 150 point upward movement, the Nifty width was not as impressive as approx. 50% of the Nifty components ended in red, suggesting earnings in selected stocks. By shifting range higher, the immediate floor of Nifty is now seen near 15,100 zones. Stock-specific rally themes are likely to continue.
Bank Nifty stood strong with a gain of 3%. Levels of 36,500 are likely to serve as immediate support zones. All components of Bank Nifty ended in the green, and further outperformance is possible.
Positive traction is visible in cement stocks (measured in price and volume). The Nifty Infrastructure Index holds relative ground, and positive follow-up may attract buyers’ interest.
On the front of the option, there are significant open interest rate additions at 15,200 put and ITM strikes for calls for the current weekly expiration suggest a shift of trade ties upside down.
Buy near Rs 94.5
Stop tab: Rs 88
Goal: Rs 107
The Bulls regained momentum control after the previous week’s corrective decline. The appearance of a large bullish light at relatively higher volumes justifies positive outlook for the stock.
Buy NIACL near Rs 135-136
Stop tab: Rs 129
Goal: Rs 150
With sustained movements above important averages, the recent overload phase appears to be in a mature phase. Positive follow-up action is likely to resume the prevailing uptrend.
(Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. The views are his own.)
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