A morning walk down Dalal Street | Nifty likely to remain volatile with downside target around 10,460

Technical experts said that the index has decisively breached its 200-day moving average (10,767) strengthening the bearish sentiments further and dissipating the hopes of a bigger pull back beyond 11,000 kind of levels.

On the downsides initial target appears to be around 10,460 and a failure to find support around these levels shall threaten the recent lows of 10,333, they added.

Big News:

In this truncated week, concerns over global growth continue to haunt investors and the resultant selloff has been dragging the markets.

Going forward, this being expiry week, the market could tend to see more volatility ahead.

So far, in December series, Sensex and the Nifty have fallen around 2 percent.

Technical View:

As far as short term is concerned, Nifty is forming an expanding triangle on the daily charts, which indicates the choppiness in the short term trend. Oscillators also are not showing clear cut direction for the Nifty in the short term.

Last week, on Friday Nifty breached crucial support of 10800. Now this earlier support is now expected to act as a short term resistance for the Nifty. Close above 10800 in Nifty would resume an uptrend, which could take it towards 10950 and 11300 targets.

Max Call OI: 11,000, 10,900, 10,800

Max Put OI: 10,500, 10,700, 10,600

Technical Recommendations:

We spoke to HDFC Securities and here’s what they have to recommend:

Kalpataru Power | Target: Rs 430 | Stop Loss: Rs 350 | Return: 12%

Delta Corporation | Target: Rs 280 | Stop Loss: Rs 255 | Return: 13%

Coromandel Intetnational | Target: Rs 499 | Stop Loss Rs 415 | Return: 12%

The author is the Senior Technical Analyst at HDFC Securities.

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