Hot Stocks: 11,700 level is likely to act as resistance for the Nifty50
Episode 1821, Oct 23, 2019, 02:00 AM
After 6-days of consecutive gains, Indian markets took a pause in Tuesday’s session with Nifty ending well below 11600 mark on the back of a sharp selloff in IT stocks led by Infosys which suffered its worst single-day drop in over six years.
From the derivative front, 11700 levels for Nifty should act as strong hurdle as of now as call writers are seen adding hefty open interest build-up at 11700 call strike.
From the technical front, the structure is still looking positive for the Nifty as far it is trading above 11300 levels on broader charts.
The Nifty50 has almost witnessed a V-shaped recovery from 11,100 levels as once again the index is holding above its long-term moving averages on the daily interval.
We believe that at the current juncture, traders should use any dip for creating fresh longs as the current trend is likely to remain bullish with Nifty moving towards 11,750-11,800 levels in the coming sessions.