The appearance of multiple bullish candles ensures an immediate floor near 16,000, however, markets will continue to remain volatile due to global uncertainty and the domestic event of states election outcome due tomorrow.
Bank Nifty rallied 2%, however, Monday’s downward gap in the index remains intact. Mixed action among the banking stocks is possible.
Nifty Auto index rebounded off its 52-week low and sustenance at current levels could attract outperformance from selected stocks.
Recommendations
Buy ITC near Rs 227
Stop loss: Rs 217
Target: Rs 247
Swift reversal from the support zone has ensured a shift of range on the upside. Sustenance could lift the stock to Rs 247.
Sell UPL March Future near Rs 730
Stop loss: Rs 755
Target: Rs 680
Momentum on the upside is stalled near the mid-point of the previous decline. Sustenance below 740-745 could drag the stock below Rs 700 zone.
(The author is Amit Trivedi, CMT, Technical Analyst – Institutional Equities, YES Securities.)
