Amit Trivedi, YES Securities
Snapping two weeks of losing streak, headline index Nifty commenced the week on a positive note. On the higher side, it rallied till 17,795. However, the inability to surpass the levels of 17,800 dragged the index below 17,500 mark. Nifty rose 2.4 per cent on a weekly basis but the recent throwback is likely to attract some consolidation. The ideal strategy remains to focus on stocks/sectors specific action.
Bank Nifty rallied for the consecutive week. The immediate support for Bank Nifty is seen near 38,000 and sustenance above for the same is likely to keep the near-term outlook positive.
Nifty FMCG index is holding ground. A stock-specific rally within the FMCG basket is expected.
Stock recommendations for Monday:
1) Buy Tube Investments of India (TI India) near Rs 1,785-1,790
Stop loss: Rs 1,725
Target: Rs 1,910
A sustained move above the important averages and reversal from the support zone is likely to lift the stock towards uncharted territory.
2) Sell Bajaj Electricals near Rs 1,220
Stop loss: Rs 1,170
Target: Rs 1,320
After losing 20% from December high, the stock swiftly recovered this week. Sustenance above the levels of Rs 1,200 is likely to keep the near term outlook positive.
(The author, Amit Trivedi, CMT is Technical Analyst-Institutional Equities at YES Securities. Views are his own.)
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