Following Tuesday’s swift throwback, today Nifty opened on a positive note. However, throughout the session, the index traded within the band of 150 points, which is its lowest daily range since 9th Feb. Follow-up action near 17,000 needs to be closely watched out as the downward gap at 17028, which Nifty formed on 24th Feb is still open.
All the sectoral indices ended in the green. Nifty Realty index outperformed the most, rallying 3.5%. After a few days of consolidation, the bulls have regained momentum in the realty space and hence a stocks specific rally is possible.
Midcap100 index managed to settle above its 50-day average, sustenance at current levels is likely to attract stocks specific outperformance; however, the Smallcap100 index lacked the required momentum on the upside.
Recommendations:
Equitas Bank
Buy near Rs 53.80
Stop loss: Rs 50
Target: Rs 62
With the post-multi-month downtrend, the stock rebounded swiftly in the recent past. Recent consolidation above levels of 51 seems to be in a mature phase. Hence sustenance could lift the stock above 60 zones.
Bharti Airtel
Buy March 720 call option near 10
Stop loss: Rs 5
Target: Rs 20
The appearance of multiple bullish candles ensures a shift of range on the higher side. Positive follow-up action is likely to unlock further upside potential till the 740-750 zone.
(The author, Amit Trivedi, CMT is Technical Analyst-Institutional Equities at YES Securities)