Nifty: Day trading Guide: Nifty faces immediate hurdle at 12,000 level

Amit Trivedi, Technical Analyst – Institutional Equities, Yes Securities

This week multiple failed attempts to sustain above 12,000 dragged the Nifty lower towards 11,661. However, mild recovery is visible in the Friday’s trade as index managed to trade in positive territory throughout most of the session. Sharp decline ensures immediate hurdle near 12,000; however on the flip side, bulls managed to defend 15 days EMA levels which is intact since start of the October month; hence Nifty is likely to oscillate between 11,650-11,850 band.

Meanwhile, immediate trading band for Nifty Bank is seen between 23,000-24,000. PSU Bank index underperformed significantly, losing 4.7 per cent on weekly close, sustainability at higher levels is always a question mark when it comes to PSU Bank index.

Bulls have regained momentum in the Metal index, most of Metal index’s components ended in green, suggesting improvement within the sector. Positive follow-up through could attract outperformance from the Metal space.

Stock Futures

Buy Ashok Leyland October Future near 75

  • Target: 81
  • Stop loss: 72
  • Sustained move above short term averages along with buying interest in today’s trade suggests that the stock is in a mature stage of recent consolidation. Positive follow-up through could lift the stock higher.

Buy Siemens October future near 1260-1265

  • Target: 1330
  • Stop loss: 1230
  • Renewed buying interest emerged near 50 day average. Sustenance above 1240 is likely to keep outlook positive.

Cash Segment

Buy Bandhan Bank near 310

  • Target: 330
  • Stop loss: 300
  • During Thursday’s decline, bulls managed to defend levels of 50 day average. Friday’s bullish candle with close near day’s high warrants positive outlook for the stock.

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