Selling pressure to continue
Last week, the Nifty faced strong resistance at the 10790 level before it slipped towards 10500. Now, 10650-100700 have become strong resistance levels and a selling opportunity may emerge around 10690-10700 levels. Sell on rise. 10440 is a strong support level for the bulls. If the Nifty breaches this level, then the selling pressure may continue for 10200-9500 levels. Buying trend will emerge only if the Nifty crosses 10750.
The December F&O contract series will start this week. State election results will have a major impact on the market. If the BJP wins, the markets will rally but if the BJP loses, the market sentiment will turn negative and the markets may continue to correct for another 2-3 months till March 2019. The election outcome of important states like Rajasthan, Madhya Pradesh, etc, will play a crucial role in determining the outcome of the upcoming Lok Sabha elections in May 2019. So trade cautiously till then.