Nifty needs to hold above 11,250-11,350 range which could again give an upper hand to bulls to drive the move towards 11,650-11,700 zone.
Though the negative bias is expected in the short term but stock-specific opportunities are likely to keep the traders in high spirits.
Investors look at the dividend yield to ensure a certain amount of return on their investment, even if share prices remain subdued. However, not all of them are attractive
By surpassing the resistance of 8,600 in the previous week, Nifty also confirmed the bullish inverse head and shoulder pattern breakout on the daily line charts.
Nifty snapped its two-day winning streak on the back of weak global cues to close with a loss of 129 points at 12,119.
Sudarshan Sukhani of s2analytics.com advises selling Bharti Infratel with a target of Rs 201.
In case of breakout, the index will face hurdle around its psychological level of 12,000.
Nalin Shah of NVS Brokerage said on the domestic front, the uncertainty surrounding upcoming state elections and the government's inability to spruce up exports will continue to keep the rupee under pressure
The stock has also found support at its long-term 200-DEMA of Rs 2580 and bounced back and has reversed from the 61.8 percent retracement zone of Rs 2508, says Hadrien Mendonca of IIFL.
The only saving grace is 10,200 rising trendline support zone on the weekly chart which the Nifty has just managed to hold above.
Rajesh Agarwal of AUM Capital recommends buying Hindustan Petroleum Corporation with stop loss at Rs 198 and target of Rs 220, Dredging Corporation with stop loss at Rs 327 and target of Rs 355 and Graphite India with stop loss at Rs 855 and target of Rs 900.
The major reasons behind rupee fall are strengthening dollar on recovery in the US economy and Turkish lira losing 28 percent against the greenback in August and more than 40 percent year-to-date.
The midcap and smallcap space continued to outperform even in this week registering the second consecutive week of smart gains. We expect the broader indices to play a catch up with benchmarks.
Rajesh Agarwal of AUM Capital recommends buying Adani Enterprises with stop loss at Rs 192 and target of Rs 205, Venkys with stop loss at Rs 2618 and target of Rs 2820 and Jet Airways with stop loss at Rs 319 and target of Rs 350.
We expect the stock to make a steady move higher towards its potential target of Rs 2880 levels in the medium term.
Hadrien Mendonca of IIFL said projections indicate that the Nifty is on its way towards its potential near-term target of 11,350-11,400 levels.
Hadrien Mendonca of IIFL suggests buying SBI with a target Rs 315.
We recommend buying this stock at current levels for a target of Rs 2,855 over the next one month, and a stop loss should be fixed at Rs 2,405.
Investors are advised to remain cautious and watch out for two levels: 10,770 on the upside and 10,550 on the down.
At this juncture, markets are clearly experiencing their corrective phases (price wise as well as time-wise) and hence, one should not venture into it aggressively.
Mitessh Thakkar of mitesshthakkar.com recommends buying Bajaj Finance with a stop loss of Rs 2099 and target of Rs 2160 and Indian Oil Corporation with a stop loss of Rs 166 and target of Rs 180.
We expect the Nifty to form a higher base by consolidating in a broader range of 10,400–10,850 that would pave the way for the next leg of the upmove.
"The stock can be bought at current level and on dips to Rs 2,400 with a stop loss below Rs 2,350 and target of Rs 2,800 levels," says Ashish Chaturmohta of Sanctum Wealth Management.
"The immediate resistance for the Nifty is placed at 10,735. If the index crosses above this level then the next target is seen at 10,800-10830," says Ashish Chaturmohta of Sanctum Wealth Management.
"We expect the Nifty to consolidate within a broader range of 10,300–10,600 amid stock specific action as we are going through the Q4 earnings season," says Dharmesh Shah of ICICI Direct.com.