After initial profit booking, markets rebounded in afternoon session on back of short covering and fresh buying in pharma, metal, nbfc, power and technology sector that helped nifty to test new highs and finally close around 10651 levels up by almost 19 points.
- From lower levels short covering pullback was seen in all the major indices in yesterday’s trade. Nifty fut. closed at 3 points premium to spot nifty with no changes in OI.
- Unwinding of short positions was seen in capital goods, auto, nbfc, textile and infra sector. Major covering was seen in stocks like bergepaint, glenmark, divislab, pfc, sreinfra and manappuram.
- Fresh long positions were initiated in metal sector and stocks like jindalstel, granules, Idfcbank, idfc, suntv and ibulhsgfin.
- Marico, unionbank, muthootfin, tvsmotor, concor and indusindbk were some of the stocks that saw short accumulation.
Domestic markets are expected to open on positive note in today’s session on back of strong global cues. However, on higher side nifty will see stiff resistance around 10700 levels and from there profit booking pressure can be seen. However, if nifty breaches 10700 and sustains above that than another round of short covering can drive nifty above 10800 levels in short term. On lower side put writing t 10500 will continue to prove as strong support for indices.
Script Action Initiation Target SL
PETRONET BUY Around 250.50 257 248.90
SBIN BUY Around 303 310 299.80
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