Nifty did witness a swing high around the expected mark of 10910 & saw a reaction post the same as the election event excitement remains high on who forms the government eventually. Volatility remained at its fore as the index witnessed a swing from its days high at 10929 towards today’s low near 10700. Though the actual verdict of who controls the state is yet to be announced the market could remain range bound within 10700-10900 for a while. A decisive breach on either side of the range would attract directional momentum in the days to come. Traders should remain cautious as the index could see further oscillation within this range & avoid any aggressive positions until a decisive breakout is not witnessed soon.
Stock: BAJAJ FINANCE
CMP: Rs 1,920
On the daily scale, the continuation pattern now looks mature for a move towards 2060. The crossover of its short-term averages augur well for momentum & hence long positions could be deployed with a stop below 1850 for an initial move towards 2060.
CMP: Rs 76
The stock remains in a spiral downtrend & the latest breakdown from the inverse flag indicates further weakness to be witnessed in the counter. Short positions should be maintained with a stop above 80 for a move towards 68.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.