Day trading guide: Bank Nifty likely to consolidate in 28,500-30,000 zone

Amit Trivedi, YES Securities

Post Thursday’s recovery, bulls took a pause as the Nifty made multiple intraday highs above the 13,000-mark. However, the inability to sustain at higher levels triggered a pull back till 12,914. Nifty failed to provide positive follow-up to prior session's up move, indicating indecisiveness near 13,000. On the options front, the 13,000 call holds ~32lakh open interest base for the coming weekly expiry. Hence, sustenance below 13,000 could continue consolidation between the 12,750-13,000 range.

Bank Nifty is likely to consolidate in the 28,500-30,000 zone, while stock-specific rally within public banking space is possible. Realty index has regained momentum on the upside and positive follow-up through could attract outperformance from a near-term perspective.

Equity recommendation
Buy Deepak Fertilizers near Rs 144-143
Stop loss: Rs 137
Target: Rs 158
Post a 27% decline from the August peak, the stock is forming higher lows. Defending levels of Rs 140, some positive traction is visible in the recent structure. Congestion phase seems to be in a mature phase. Hence, any sustenance above Rs 145 could lift the stock higher till Rs 158 zone.

Derivative recommendation
Sell Mcdowell-N December future near Rs 552-554
Stop loss: Rs 571
Target: Rs 505
This week’s decline broke the immediate support zone. Swift decline ensures influence of resistance at play. Hence the inability to hold current levels could attract further correction on the downside.

(Amit Trivedi is CMT, Technical Analyst - Institutional Equities, YES Securities. Views are his own.)