Last week was quite a disappointing week for Indian bourses where broader indices saw sharp correction and closed with loss of almost 2.85% on weekly basis. In Friday’s trade, indices opened on negative note but from lower levels selected short covering was seen across the board that helped nifty to recover but finally closed around 10454 down by 122 points.
- Long unwinding pressure was seen in bank nifty and Nifty IT fut. whereas nifty fut. saw short accumulation. Nifty fut. added almost 15.25 lakh shares in OI whereas premium reduced to 15 points from 35 a day before.
- Selected short covering was seen in stocks like ceat, fortis, jisljaleqs, ajantpharm, pageind and cadilahc.
- Fresh long positions were initiated in stocks like hindzinc, adanient, sail, jet airways, cipla and relinfra.
- Selling pressure continued in banking sector and stocks like srtransfin, ramcocem, bhartiartl, glenmark, pcjeweller and idea.
Markets are expected to open on positive note in today’s session but on higher side nifty will continue to see stiff resistance around 10500-10540 levels. Overall short term outlook remains weak for short term and any pullback towards 10550 levels can be used to exit from trading long positions and initiate fresh shorts. On lower side, nifty will see strong support around 10300 levels and below that can drift towards 10120-10040.
Script Action Initiation Target SL
BATA BUY Above 720 745 705
DRREDDY BUY Around 2190 2310 2145
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