The market continued its volatile move as after a flat start Nifty rallied till 17,325. However, once again it failed to sustain at higher levels, erasing early gains. Nifty eventually ended negative at 16,983. The index formed a small-bodied bearish candle with a large upper shadow which indicates selling pressure at higher levels as it failed to surpass the peak of Friday’s tall bearish candle. With India VIX closing above levels of 21, ongoing higher price volatility is likely to continue and stability is essential for any revival to set in.
Intraday rally in the Bank Nifty found stiff resistance near 36,800. Higher shadow in the Bank Nifty infers selling pressure at higher levels.
Stock Recommendations
Buy near Rs 209
Stop loss: Rs 204
Target: Rs 219
After losing 29% from the recent high, renewed buying interest emerged near the 100-days average. The appearance of multiple bullish candles ensures an immediate floor near Rs 195-200 zone. Sustenance could lift the stock to Rs 219 zone.
Sell Kotak Bank December future near Rs 1,980
Stop loss: Rs 2,025
Target: Rs 1,890
Post the multi-month uptrend, the stock is going through a corrective phase – forming a series of descending tops and bottoms. Negative follow-up could attract further decline till Rs 1,900.
(The author is CMT, Technical Analyst – Institutional Equities, YES SECURITIES. Views expressed are personal.)
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