Moneycontrol
Last Updated : Oct 22, 2018 04:14 PM IST | Source: Moneycontrol.com

Buy or Sell | Short-covering ahead of F&O expiry to limit fall

In the wake of range-bound trade, the Nifty index failed to sustain above 10,500 after touching a high of 10,710 levels. It slipped from important support levels to touch a week's low of 10,294.

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The Indian equity market witnessed a massive sell-off across housing finance companies (HFCs) largely on account of exposure towards downgraded property-developers. IT stocks were weighed down by proposed changes in H-1B visa, said Dinesh Rohira, Founder and CEO of 5nance.com.

In the wake of range-bound trade, the Nifty index failed to sustain above 10,500 after touching a high of 10,710 levels. It slipped from important support levels to touch a week's low of 10,294.

The drag during the week was primarily led by a fall in Nifty IT, auto, and media, which were down 1.4 percent, 0.6 percent, and 1.1 percent, respectively. The Nifty FMCG was the top gainer and rose by about 5.4 percent during the week.

Short-covering is expected to limit the downward swing until expiry, so it is advisable to remain cautious and remain stock specific. We maintain a short-term range-bound trade for the index at 10,710 on upside and 10,260 on the downside, said Rohira.

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First Published on Oct 22, 2018 03:28 pm
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