Nifty in decisive range 10400-10500
Last week, the Nifty moved in a tight range of 10350-10450 with volatility. It got strong support at 10400 and faced strong resistance at 10500. Only a close above 10500 will take the Nifty to 10700 in the November series. On a close below 10400, the Nifty could slip to 10200 in the November series contract.
An important W.D. Gann date (7 November 2017) lies in the next week and therefore, the markets will witness big moves next week, which will set the trend till the end of the series. The US Federal meet indicated a rate hike in December. On the domestic front, Gujarat elections will be held in December. So, the outcome of the elections will have a huge impact on the markets for the short-term. If the BJP loses, a 1000-2000 point movement can be seen on the downside but if it wins, a strong upside movement is likely as the Gujarat elections will set the stage for 2019 election. Among stocks,
Tata Motors is a Buy at Rs.447 for upside levels of Rs.453-456 (SL: Rs.440) Vedanta is a Sell below Rs.338 for downside levels of Rs.333-328 (SL: Rs.345)
Nifty Index – At spot price - Buy above Rs.10470 for upside levels of Rs.10500-10550; Sell below Rs.10440 for downside levels of Rs.10400-10350-10300.