The Nifty has to cross and hold above 11750-11777 zones to get the bull’s grip for a bounce towards 12020 then 12200 zones ahead of the festive season.
Banking and financial stocks have seen positive momentum due to weaker rupee, whereas Technology stocks witnessing some sort of underperformance compared to benchmark indices.
The crucial support for the Nifty is placed at 11300 and then 11111. While resistance can be seen around 12000 mark. Traders should use any dip towards 11300 as a buying opportunity.
Lower rollovers were witnessed in the September series indicating that weak hands are out from the market, says Umesh Mehta, Head of Research, SAMCO Securities
The rollover in Nifty for September series stood at 68.76 percent, which was below its quarterly average of 75.34 percent.
The correction in stock prices presents an opportunity for investors.
Tata Motors was the biggest gainer, up 1.5 percent ahead of quarterly earnings later today.
Religare Capital Markets‘ Misal Singh feels that the rally in BHEL‘s stocks in September was probably on the back of positive reforms in the power sector. The company is battling structural problems, he says.
The bulls are betting that the recent rally has captured most of the good news on QE tapering, and that even if the US Fed takes a dovish stance, the Nifty will find it tough to cross 6000 in this series.
Technical analyst Anil Manghnani, Modern Shares & Stock Brokers sees the level of 5,250 as an important support for the Nifty from a trading perspective, but for the entire September series 5,190 would be a major support.
Heading into the September series, experts on the street are worried that the market may not be able to hold on to its bullish stance.
A smooth expiry session today, says CNBC-TV18's Managing Editor Udayan Mukherjee.
It's F&O expiry today and the August series is the worst series since October 2008. In an interview on CNBC-TV18, Manoj Murlidhar, AVP-Derivatives of IIFL PReMIA says the upside might definitely be capped at 4,900 on the Nifty.
Observing that the 4,770-4,800 levels are be the most crucial levels being watched by the put writers, Hemant Thukral, head of derivatives research at SBI Capital Securities says if those levels break, there is 'big trouble' in the waiting.