Day trading guide: Positive follow-up could push Bank Nifty over 26,000

Amit Trivedi, YES Securities

Nifty climbed for the straight third session, surpassing levels of 11900 mark. Nifty is ~4 per cent below its 52-week high (i.e. Jan’ 20 peak) and ~59 per cent above its March month’s low. In today’s trade, Nifty moved volatile as it erased intraday sizable gains multiple times; however on a sustenance above 11800 mark, Nifty again regained momentum on the upside and managed to provide a close above 11900. Nifty’s higher price volatility is likely to continue and trading band of 11600-12000 remains intact, it could revisit levels of 12000 if levels of 11800 are decisively held.

During the day, Bank Nifty turned lower sharply; however bulls managed to protect Tuesday’s low (i.e. 25086) and eventually Bank Nifty managed to shut in the positive territory. Positive follow-up through could lift the Bank Nifty above 26000 mark.

Sectoral indices managed to recover from lower levels, IT and Pharma index outperformed most; while Realty index lost about 2 per cent. India Vix cooled off for the consecutive session. On options front, significant open interest additions are visible at put strikes ranging from 11700 to 11900.

Future recommendation
Buy Apollo Tyres November future near 148

• Stop loss: 143
• Target: 158
• Recent throwback found support near breakout zone and since then it is trending higher. Sustenance above levels of 145 could lift the stock towards 158 zone.

Option recommendation
Buy Jindal Steel 215 strike November call option near 8

• Stop loss: 4.5
• Target: 15
• The stock has regained momentum on the upside. Swift up move in the recent past ensures shift of range on the upside.

Equity recommendation
Buy Emami Ltd near 370

• Stop loss: 350
• Target: 410
• Levels of 50 day EMA acted as solid support during recent decline. Short term oscillators turned up in collaboration with stock’s up move which represents positive outlook for the stock.

(Amit Trivedi, CMT, is Technical Analyst - Institutional Equities, YES Securities. Views are his own)