Crude and rupee’s trajectory will be crucial for the market, going ahead.
What a day of trade! Bulls made a roaring comeback. There was a sharp recovery across sectors, particularly in the broader markets, helped the indices end higher. The Nifty clocked 10,700 again and ended above that mark.
The day began on a bearish note, with indices giving up key levels. Further weaknesss happened through the day, with the Sensex plunging 400 points. However, bulls staged a tough comeback to end the session on a high.
Crude and rupee’s trajectory will be crucial for the market, going ahead. While there has been some impact on Indian indices, crude’s fall has been arresting the fall.
Big News:
Big news for the market is monthly expiry of derivative contracts for December series. It has been a volatile month and a year so far. In this series, indices have lost around 2 percent.
On an expiry day, market tends to be volatile as traders roll over their positions for the upcoming month.
Technical View:
Technical experts believe that for the coming sessions, Wednesday’s panic low of 10535 is likely to act as crucial support.
The expectation among experts is to see the Nifty holding 10600 mark as it is 61.8% retracement of last up move (10334 – 10985).
Max Call OI: 11,000, 10,900, 11,200
Max Put OI: 10,500, 10,600, 10,700
Technical Recommendations:
We spoke to ICICI Securities and here’s what they have to recommend:
Bank of Baroda | Rating: Buy | Target – Rs 132.00 Stop Loss | Rs 109 | Upside: 12%
Abbott India | Rating: Buy | Target Rs 8,450 | Stop Loss: Rs 7070.00 | Upside: 13%
The author is Head Technical at ICICI Securities.
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