Post two days’ pause, the Nifty opened with an upward hole in an uncharted zone. On intraday decline, it defended ranges of 14,200 and ultimately surpassed ranges of 14,300, ending close to day’s excessive. Appearance of a bullish candle with file shut ensures a shift of base increased. Levels of 14,100 might end up as assist zones.
Bank Nifty underperformed the benchmark index. Post hole up opening, Bank Nifty did not cling on to increased ranges, which ultimately led to minor revenue taking. Follow-up motion must be intently watched out as incapacity to maintain above 32,000 might appeal to delicate revenue taking.
Gaining for the consecutive seventh week, IT index rallied ~7% on weekly shut. FMCG index snapped two weeks’ profitable streak.
Buy Heidelberg Cement close to Rs 235-233
- Stop loss: Rs 223
- Target: Rs 257
- The inventory has witnessed consolidation breakout on a relatively increased quantity. Positive observe by means of might proceed uptrend.
Index choice technique
Covered placed on Bank Nifty
- Sell January future close to 32,180-32,200 and Sell 31,500 strike put (expiry 14 Jan) close to 140
- Stop loss: 32,660
- Target: 31,500
- Bank Nifty did not cling on to increased ranges, thereby underperforming the benchmark index. Inability to maintain at present ranges might appeal to delicate pull again until 31,000-31500 zone.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his personal.)