Day trading guide: Bank Nifty needs to break above 31,500 to regain momentum

Amit Trivedi, YES Securities

Post Friday’s narrow range trade, the Nifty ended above 14,100, amid volatile trade. The Nifty opened on a gap up note. But, it erased early gains as it made a low of 13954. However, on a sustenance above 14,000, bulls again regained momentum on the upside. The Nifty formed a hanging man candle pattern (i.e. small bodied candle at top with relatively large lower shadow). Appearance of this pattern at the current juncture could attract some consolidation. However, such patterns require confirmation on the following days for its implication. Shifting base higher, levels of 13,900 could turn out as an immediate floor.

Continuing prior week’s underperformance, Bank Nifty failed to surpass levels of 31,500. A decisive breakthrough above 31,500 is essential to regain momentum on the upside.

The Metal index stood out strongly, gaining 5%. Stock-specific rally within this space is likely to continue.

Equity recommendations

Buy MOIL near Rs 148

• Stop loss: Rs 141
• Target: Rs 163
• Prior week’s decline found renewed buying interest at lower levels. Appearance of a bullish candle at current levels could mean a shift of range on the upside. Positive follow through could lift the stock till Rs 165 zone.

Buy Strides Pharma Science near Rs 930

• Stop loss: Rs 870
• Target: Rs 1,050
• Sustained moves above important averages is likely to keep near-term outlook positive.

Buy CEAT near Rs 1,130

• Stop loss: Rs 1,08
• Target: Rs 1,230
• Today’s up move was accompanied by comparatively higher volumes. Short-term indicators turned up in collaboration with rising price moves.

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