NEW DELHI: After four days of decline, Nifty witnessed mild gap up opening; however soon it erased early gains, moreover momentum on the downside picked up as it sustained below levels of 17,100. On the flip side, Nifty fell as low as 16,825. Appearance of another bearish candle ensures a shift of range on the downside with immediate hurdle is now placed near 17,250.
All the sectoral indices ended in red, except the oil and gas sector. The IT index remained weak for the straight eighth session.
“Bank Nifty was outperforming during the first half of the session, however eventually it gave up early gains to settle below prior session’s low. Stability at current levels is important for any recovery to set in,” said Amit Trivedi, Technical Analyst – Institutional Equities, YES Securities.
Below are key recommendations for Wednesday:
LIC Housing Finance
Buy near Rs 372-368
Stop loss: Rs 360
Target: Rs 395
Immediate support is seen near Rs 368. Series of ascending tops and bottoms remains intact. Sustenance is necessary to make an attempt towards Rs 395.
Analyst: Amit Trivedi, YES Securities
UPL
Sell April future near Rs 810
Stop loss: Rs 832
Target: Rs 760
Recent rally failed to surpass Jan’22 peak, multiple upper shadow indicates influence of hurdle at play. Negative follow-up action could drag the index till Rs 760.
Analyst: Amit Trivedi, YES Securities
Divi’s Labs
Buy between Rs 4480 -4490
Stop loss: Rs 4350
Target: Rs 4800/4900
Divi’s Labs’ weekly range breakout is above Rs 4,500 – 4520. QTR ATR shifted higher to Rs 4350 from Rs 3940. Implied quoting below 30-35 per cent consistently – a positive sign as probability of breaking below range is low. OTM/ATM CE strike Rs 4500 – 4800 witnessing unwinding suggests possibility of range breakout (Apr and May series). Important support is placed below Rs 4350.
Analyst: Kruti Shah, Equirus
Adani Enterprises
Sell between Rs 2150-2160
Stop loss: Rs 2250
Target: Rs 1950/1880
On a monthly time frame stock is trading near the exhaustion zone. It has reacted sharply from the previous supply zone forming multiple tops above Rs 2200. Stock is garnering weakness below Rs 2100, suggesting an opportunity to create a short. Current open interest at 19 million shares against 22 million of three-month average indicates long unwinding
Analyst: Kruti Shah, Equirus
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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