NEW DELHI: Nifty50 continued its recent southward journey on Thursday. Forming another bearish candle on the daily chart, the index fell as much as 157,36 before settling near 15,800.
The 50-pack index has lost 13 per cent from the recent peak and is down 9 per cent in 2022 so far.
“Failed recoveries indicate the influence of resistance and internal weakness. However, the index managed to defend its March month’s lower levels of 15,671. Nifty50 and many sectoral indices entered an oversold region on short term charts. But stability is essential for any short term bounce. India VIX rallied further to settle above 24. High volatility is likely to stay here,” said Amit Trivedi, CMT, Technical Analyst – Institutional Equities, YES Securities.
Below are key recommendations for Friday:
UPL | SELL
A swift throwback from the hurdle zone is likely to keep near term structure negative. Inability to hold the current levels could drag the stock tO Rs 730 levels. Traders can sell UPL May futures near Rs 770-775, with a stop loss at Rs 794, for the target of Rs 730.
Analyst: Amit Trivedi, YES Securities
CESC | BUY
The stock rebounded from its immediate support zone of Rs 77-75. Positive follow-up action to Thursday’s bullish candle is likely to lift the stock to Rs 89 zone. Traders can buy the stock near Rs 79, with a stop loss placed at Rs 75 for the target of Rs 89.
Analyst: Amit Trivedi, YES Securities
UltraTech Cement | BUY
On a monthly time frame, the stock is trading at Gann support. During the previous sell-off, it bounced sharply from the demand zone of Rs 6,000-6,200. The stock is garnering strength above 6,300, suggesting an opportunity to create long.
The current open interest at 21 lakh shares against 22 lakh of the previous series suggests positional longs are still holding on to the stock. Buy in the Rs 6,200-6,160 range, with a stop loss of Rs 6,000 and a target price of Rs 6,900/7,000
Analyst: Kruti Shah, Equirus
Bank Nifty | BUY
The Bank Nifty is approaching an important range with heavy open interest. Bank Nifty VIX at 28-30 per cent is converting into weekly range 33,000-3,6500.
Maximum Put is at 32,000 strike (4.2 lacs), while the maximum call option is at 38,000-strike (8.7 lakh). Fresh open interest has been built at 34,500-36,000 strikes call ( probability of long creation/short covering). Options activity suggests unwinding in the in-the-money put option.
Traders may buy Bank Nifty in a range of Rs 33,500-33,300, with a stop loss at 32,000, for the target of 35,000-35,500.
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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