10850 is a crucial support level
As rightly stated in the previous edition, the Nifty showed weakness and tested the 10900 level last week. Now, 1085010866 is a crucial support level for the Nifty for a small rebound to 11050-11070 levels. The markets will gain strength to move towards 11130, only if the Nifty crosses 11070. If the Nifty breaches 10850, then we may see a downside of 200 points towards 10610. So, trade cautiously and take light positions in the market. Crude oil prices are on the rise and the INR continues to depreciate against the USD, which is putting inflationary pressure on the Indian markets. USD/INR Futures 72.50 is a crucial level, above which the USD can strengthen to 73.40 soon. Stocks like Yes Bank, Dewan Housing Finance Corporation and PSU banks such as Punjab National Bank and Union Bank of India have spoiled the market sentiment.
Wipro looks good above Rs.325 for a target of Rs.332-340 (SL: Rs.315)
Hindalco Industries looks weak at Rs.230 for a target of Rs.225-220 (SL: Rs.237)