Day trading guide: Nifty might witness mild pullback if it fails to hold 13,500 level

Amit Trivedi, YES Securities

Following Thursday’s recovery from 13,400, the Nifty registered a record high of 13,579. However, inability to cling on to the higher levels erased early gains, while momentum on the downside picked up as it sustained below levels of 13,500. Eventually, after marking day’s low at 13,403, Nifty ended in the positive territory at 13,524, up 36 points. Throwback from higher levels in today’s trade along with flat Nifty breadth indicates profit taking in select stocks. Going ahead, sustenance below 13,500 could trigger mild pullback towards the 13,300 zone. However, the stock-specific rally theme is likely to continue.

After marking identical peaks near 30,800, the Bank Nifty dragged lower, erasing early gains. Sustenance above 30,100 in the Bank Nifty is essential to make an attempt till 31,000.

Snapping five weeks’ winning streak, the Auto index lost 1.2% this week; while the FMCG index stood out, jumping 6% on a weekly close.

Equity recommendation

Buy Balrampur Chini near Rs 172-171

• Stop loss: Rs 161
• Target: Rs 193
• The stock rebounded from the Rs 160 zone with a sustained move above short term averages. Multi-month breakout could lift the stock higher till Rs 190+ levels.

Buy SAIL near Rs 57.50-57

• Stop loss: Rs 54
• Target: Rs 65
• Consolidation breakout on comparatively higher volumes ensures resumption of uptrend. Appearance of a bullish candle at the current juncture suggests shifting range higher. The stock could inch higher till Rs 65 zone.

Derivative recommendation

Sell Muthoot Finance December future near Rs 1,180

• Stop loss: Rs 1,220
• Target: Rs 1,100
• Rally in the stock stalled near the Rs 1,210 zone. Fresh build up on futures along with downticks indicates overhead resistance at play. Inability to hold current levels could drag the stock lower.

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