The Nifty maintained its five-day winning streak on Wednesday as it defended the 11,000 level well. Broad-based participation has been witnessed since the last few days but the lack of participation by some of the large cap index constituents at this juncture keys the aggression expectation a bit low. A move above 11,070 in today’s session would serve as a key to unlock fresh momentum as the index had closed its previous session forming a 'Spinning Top' formation within the running trend.
Highest PE Open Interest (OI) concentration has been witnessed at 10,900, and hence, an expectation of a move below the same remains low. On the other hand, cool-off in volatility with India VIX slipping back below 16-mark augurs well for the ongoing upmove to be retained. Hence, we believe that a move above 11,070 would serve as a confirmation of fresh bullish momentum and could see the index gallop towards its 200-DEMA placed around 11,200. Trailing stop to 10,930 and adding longs for a move towards 11,200 would be an ideal strategy going forward.
CMP: Rs 530.70
TARGET: Rs 570
Positive sector outlook and a fresh breakout from the continuation formation on the daily scale warrant upmove to continue in the short term. The breakout has been supported with fresh OI additions primarily on the long side. Momentum traders can still add longs with a stop below Rs 518 for a pattern target close to Rs 570 with a minor hurdle near Rs 550.
CMP: Rs 248.55
TARGET: Rs 240
Wipro continues to slide lower as the sequence of lower top and lower bottom persist at a uniform rate. The stock continues to be an underperformer within the IT pack. The recent breach below 450 post the pullback complements the ongoing down trend to continue. Trading shorts with a stop above its 20 DEMA around Rs 254 should be an ideal setup for fresh shorts for a swing target towards Rs 240.
Disclaimer: Analyst may or may not hold positions in one or more stocks