Nifty rallied for the straight third session on Wednesday, reclaiming ranges of 16,700 and registering file excessive of 16712. Nevertheless, incapability to maintain above 16,700 erased early beneficial properties and Nifty ultimately ended flat at 16,635, up 10 factors.
Look of small bearish candle with comparatively giant higher shadow infers gentle revenue taking at greater ranges. Observe-up motion must be carefully watched as destructive follow-up may entice consolidation between 16,500-16,700 ranges.
In the meantime, after a optimistic begin, Financial institution Nifty quickly entered the destructive territory. Intraday rally remained brief lived as Financial institution Nifty didn’t surpass ranges of 36,000; consolidation inside a band of 35,000-36,000 appears to be like believable.
After two days of decline, bulls regained momentum within the FMCG index. Inventory-specific rally inside the FMCG area is feasible.
Bharat Forge September future close to Rs 736-739
Cease loss: Rs 760
Goal: Rs 685
Snapping a multi-month up transfer, the inventory entered a corrective section, however restoration remained brief lived. Therefore, destructive follow-up motion may drag the inventory beneath the Rs 700 zone
Suv TV September future close to Rs 490-492
Cease loss: Rs 504
Goal: Rs 467
Current swift decline has damaged the cluster of the assist zone. Failed restoration ensures affect of resistance at play.
(Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his personal.)