The Nifty50 index swung between gains and losses throughout Friday’s session after a positive opening. However, the index recovered from the day’s low at 14,592 to settle at 14,678, a cut of 19 points for the day. On a weekly basis, the Nifty50 gauge put an end to a two-week winning streak. Its price structure since the April low shows ascending lows and descending tops, indicating that the benchmark index is stuck in a congestion phase. It is expected to move in an immediate trading band of 14,500-14,950.
The Bank Nifty index moved lower amid volatile trade. An intraday recovery remained short-lived with the index facing stiff resistance near 32,600. Its close near the lower band of that range indicates that further weakness is possible.
All the sectoral indices ended in the red, except Nifty FMCG. The ratio of the FMCG index to Nifty is bouncing off its support zone. A positive follow-up through could attract buying interest in the FMCG space.
- Sell IndusTower May futures near Rs 247
Target: Rs 235
Stop loss: Rs 254
A congestion breakdown on the short-term charts could keep the near-term outlook negative.
- Sell Manappuram Finance May futures near Rs 151-152
Target: Rs 143
Stop loss: Rs 156
A recent rally remained short-lived with resistance near Rs 155. A throwback thereafter could drag the stock lower towards Rs 143.
(Amit Trivedi, CMT, is Technical Analyst-Institutional Equities at YES Securities)