Stock picks of the day: Breakdown below 10,800 could trigger further fall to 10,650

The market ended marginally higher amid volatility for the week ended February 8, extending its prevailing consolidation phase. The sentiment was upbeat in the first three sessions, taking cues from recently announced Interim Budget and optimism ahead of the monetary policy review meeting.

However, participation was limited largely to the index majors while decline continued on the broader front. Profit taking in final sessions trimmed gains of the benchmark index too and Nifty finally closed at 10,943.60. 

The Nifty couldn’t sustain above 10,950 last week in spite of good start. The momentum was weighed down by continuous fall on the broader front which kept the uneasiness intact.

We maintain our stance that convergence between the broader market and the benchmark index is essential for any sustainable move. 

The Nifty has crucial support placed at 10,800 and its breakdown could trigger further fall to 10,650. In case of any up move, 11,100 will act as a hurdle. Considering the present scenario, we advise keeping limited exposure and preferring hedged trades.