By Amit Trivedi, Technical Analyst – Institutional Equities, YES Securities
Nifty commenced this week on a positive note. However, after that it faced mild pullback till 14885. In today’s trade, Nifty recouped prior session’s losses and closed near day’s high (up 1.9%). Nifty formed ‘above the stomach bullish candle’ pattern (i.e. opened above mid-point of the prior bearish candle and closed near day’s high), the said pattern indicates that levels of 14,950-15,000 could turn out as immediate support zone.
Bulls made a strong comeback in BankNifty. Surpassing the prior month’s peak of 34287, BankNifty formed a large bullish candle. Levels of 33,500 are likely to act as an immediate floor, while the rally could continue till the 35,000-35,200 zone.
Snapping three sessions losing streak, bulls regained momentum in the FMCG space. Positive follow-up through could attract outperformance from the FMCG space.
near Rs 650
Stop loss: Rs 625
Target: Rs 710
Appearance of the large bullish candle on comparatively higher volumes indicates that the recent corrective phase has ended and the stock has resumed its prevailing uptrend.
near Rs 395
Stop loss: Rs 380
Target: Rs 425
Sustained move above important averages is likely to keep the near term outlook positive. On-going northbound journey at uncharted zone is likely to continue.