Rallying more than 8% from the recent low of 13,131, the Nifty surpassed levels of 14,200. It opened today on a negative note, albeit defending levels of 14,000. It eventually recouped early losses and registered a fresh record high of 14,211 and closed near the day’s high. Appearance of another bullish candle indicates a shift of range on the upside with immediate floor near 14,000.
Post a few days’ sideways consolidation, bulls regained momentum in the Bank Nifty. Momentum on the upside picked up as it sustained above levels of 31,500. Sustenance above 31,500 is essential to make an attempt towards 32,000.
Meanwhile, the Nifty IT index outperformed most; the index is up by ~6% this month so far after rallying 55% in the previous year.
Buy Tata Power near Rs 80.50-80
- Stop loss: Rs 76
- Target: Rs 89
- Post a few days of consolidation, the stock has regained momentum on the upside. Appearance of a bullish candle with close above prior week’s high could keep near-term outlook positive.
Sell IGL January future near Rs 523 and buy Petronet January future near Rs 257
- Current ratio: 2.04
- Stop loss on ratio: 2.12
- Target on ratio: 1.88
- 60 days correlation: 85+
Since the past few sessions, the ratio is hovering below levels of 2.07. Inability to sustain at current levels could drag the ratio till 1.90 zone.