Day trading guide: Bank Nifty needs to sustain above 31,500 to keep near-term outlook positive
After a sequence of positive closes, bulls took a pause on Wednesday. After registering a file excessive of 14,244, the Nifty failed to sustain above ranges of 14200. Nifty’s decline took the type of a bearish candle with an in depth close to midpoint of the previous bullish candle. Appearance of this sample at present juncture may imply profit taking at larger ranges, whereas unfavorable observe by way of may appeal to some consolidation/pullback in the direction of the 14,050 zone.
Meanwhile, persevering with the prior session’s uptrend, the Bank Nifty rallied until 31,982. However, incapacity to surpass 32,000 erased early good points and ultimately Bank Nifty witnessed indecisive candle formation. Follow-up motion needs to be carefully watched as sustenance above 31,500 is crucial for Bank Nifty to keep near-term outlook positive.
Sectoral development turned blended. India Vix steadily moved up, reclaiming ranges of 21.
The NiftyAuto index retreated after retracing virtually 2/3 (i.e. 66.66%) of the 2018-2020 12 months decline. Negative observe by way of on this house may appeal to some revenue taking or consolidation in auto shares.
Equity advice
Buy Torrent Power close to Rs 326
- Stop loss: Rs 310
- Target: Rs 355
- Forming a big bullish candle, the inventory has witnessed congestion breakout on a relatively larger quantity. Positive observe by way of may raise the inventory in the direction of Rs 350 plus ranges.
Derivative advice
Sell Apollo Tyre January future close to Rs 187
- Stop loss: Rs 190.5
- Target: Rs 180
- Retracing 61.8% of the earlier decline, the current rally stalled close to ranges of Rs 190. Negative observe up may appeal to gentle pullback until Rs 180 zone.
(
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his personal.)
