Hot Stocks: Use dips to create fresh long positions in Nifty; support seen at 11,700
Episode 1841, Oct 30, 2019, 01:46 AM
Nifty50 has given a sharp breakout above the key resistance levels of 11,700 after consolidating in the range of 11500-11700 for the last five trading sessions.
The Indian markets witnessed sharp gains in the October 29 session as celebrations among bulls continued post-Diwali, supported by a rally in auto, metal and energy stocks.
The Nifty indices lodged gains of more than 1 percent to close above the 11,750 mark. On the derivative front, call writers were seen covering their short positions while put writers added hefty open interest at 11,700 strikes.
From the technical front as well, the Nifty gave a sharp breakout above the key resistance levels of 11,700 after consolidating in the range of 11,500-117,00 for the past five trading sessions.
This clearly shows that the momentum is likely to be tilted towards bulls in the coming sessions as well and any dip into the prices should be used to create fresh longs.
On the lower side of the range, 11,700-11,650 should act as strong support for the Nifty (SPOT) and the current trend is likely to move towards 11,850-11,900 levels.