Technical View: Nifty forms bullish candle on expiry day, strength likely above 11,695
Mohammad advises traders to continue to hold on to their long positions with a stop loss below 11,416 on closing basis, whereas fresh longs should be considered on a fresh breakout above 11,695 levels.
The Indian rupee ended at 70.88 against the US dollar, higher compared to Wednesday's close of 71.03 a dollar.
Shriram Housing Finance appointed Gauri Shankar Agarwal as CFO.
FII & DII
FIIs net bought Rs 737.17 crore worth of equity shares and DIIs net bought Rs 339.28 crore in equities today, as per provisional data available on NSE.
Shrikant S. Chouhan, Senior Vice-President, Equity Technical Research, Kotak Securities:
We could see 11,700/11,720 levels, its sustenance above this level would result in a rally towards 11,800. This is where the market had left a bearish gap on the day following Union Budget. Failure to do so may result in another round of weakness, where markets would trade below the level of 11,530 and may retest 11,400.
Ajit Mishra Vice President, Research, Religare Broking:
We reiterate our bullish view on the Nifty and advice continuing with “buy on dips” approach. It has the potential to test 11,700-11,800 in the near future thus any intermediate dip should be considered as a buying opportunity. We’re still seeing limited participation thus suggest keeping caution during stock selection.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities:
After showing one day downward reversal in the last session, the Nifty witnessed a sharp upside bounce today and erased the loss of the last session. A long bull candle was formed today, that has engulfed the negative candle of the last session. Technically, this pattern indicates a strength of a recent uptrend and a smart comeback of bulls from a lower levels.
The crucial opening upside gap (event gap of 23rd Sept) remains partially filled as of last session. The Nifty showing upmove today, without violating this upside gap at the lows could be a positive indication. The next upside resistance to be watched at 11,700 levels.