Strong re­sis­tance at 10600

Money Times - - Market Outlook | Techno Funda - By Ro­han Nalavade

Nifty faces strong re­sis­tance at the 10600 level due to which profit-book­ing is seen at the higher lev­els. 10450 has be­come a strong sup­port level now. Fresh sell­ing will emerge only if the Nifty breaks 10450. The Nifty needs to cross 10600 on a clos­ing ba­sis for fresh buy­ing to emerge.

The W.D. Gann date lies in this week, which is im­por­tant for the mar­kets. Crude oil prices have fallen and the In­dian Ru­pee has sta­bi­lized against the US Dol­lar, which had a pos­i­tive im­pact on the In­dian mar­kets. Gold prices are likely to rise this year.

Be cau­tious as the over­all trend for the Nifty re­mains bear­ish and is of sell­ing and a cor­rec­tion is likely in the No­vem­ber or De­cem­ber F&O se­ries.

The state elec­tions in De­cem­ber are very cru­cial for the mar­kets as they will form the base for Lok Sabha Elec­tions in 2019. The mar­kets are likely to re­main volatile till De­cem­ber with a neg­a­tive bias. The rise wit­nessed on the bourses last week is tem­po­rary and fresh short po­si­tions will be ini­ti­ated soon till De­cem­ber. Fresh short po­si­tions in the Nifty will be seen be­tween 10600 and 10700 for 10200 with a stop loss of 10825 (spot). Among stocks,

 Wipro is a ‘sell’ be­low Rs.324 for Rs.318-315 lev­els (SL: Rs.330) Ci­pla is a ‘sell’ be­low Rs.610-615 for Rs.600-590 lev­els (SL: Rs.622)

Reliance In­dus­tries is a ‘sell’ at Rs.1075 for Rs.1060-1050 lev­els (SL: Rs.1089) Axis Bank is a ‘sell’ at Rs.612 for Rs.600 (SL: Rs.619)

In­dian Oil Cor­po­ra­tion is a ‘buy’ above Rs.148 for Rs.152-156 lev­els (SL: Rs.143)

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