Strong resistance at 10600
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)