Go long in Havells, BEL, ICICI Bank, Kotak Bank, HDFC
The Nifty has immediate resistance around 11700 followed by 11770-11800.
Technical & Derivative Analyst, Karvy Stock Broking
Where are We? Broad-based buying was witnessed across sectors amid strong flows from foreign and domestic players. In the current month, the Nifty has outperformed the Bank Nifty by a huge margin where it has gained 1.6 per cent while the banking index is currently trading flat.
What is in Store? The Nifty has immediate resistance around 11700 followed by 11770-11800 where an unfilled gap is placed on the daily charts. After a steep up-move from past eight trading sessions, we expect the Nifty to consolidate in the narrow range of 11500-11700 levels with a positive bias. The results season has taken centre stage with more than 10 index heavyweight stocks to declare their earnings which includes Axis Bank, Bajaj Finance, Kotak Mahindra Bank, Bajaj Auto, HCL Tech, Hero MotoCorp, L&T, ITC, Maruti and State Bank of India. On the other hand, developments on the US-China trade war and Brexit fronts will be crucial events to watch out for.
What could investors Do? In the truncated week, we expect the Nifty to trade in a sideways consolidation zone ahead of Diwali and any corrections may be utilised to create long positions on the index. Technically, the index has support around 11550-11570 followed by 11500; while resistance is placed around 11700-11770 levels. Shortterm traders may adopt a ‘buy-on-dip’ strategy around 11550-11575 keeping strict stop-loss below 11500 for the targets of 11750-11770 levels. Among the broader markets, one may go long on counters like Havells, BEL, ICICI Bank, Kotak Bank and HDFC which have added long positions in the derivative space.