he Nifty was under pressure on Thursday, as it failed to move past the previous day’s high. Even as the Nifty lost about 1%, November futures
While such a convergence points to a strong support at that level, the future crossover between these averages will be crucial for determining the market direction in the near future. At this juncture, however, two scenarios look possible. First, if a positive crossover happens between 5-DMA with both 20- and 50-DMA respectively, it could give a bullish push to the Nifty.
However, if a negative crossover between the 20- and 50-DMA emerges, it could intensify the downward pressure on the Nifty. However, a rebound from 4900 looks more likely, given that the November 4900 puts have gained close to 35 lakh shares in open interest in the past four trading sessions.
STOCKS F & O
ITC is trapped in a range of Rs 241-265 since mid-October. The downside is supported by a trendline joining the stock’s lows since June 2009. Post its decline on Thursday, the stock has closed below both its 10- and 20-DMA, which are near 255. As long as the upside remains capped around Rs 255-260, the stock can move back to Rs 240.
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Nifty to cross 5300 soon: Anil Manghnani 'Investment should be stock specific not index specific' Buy and hold Welspun Gujarat with stoploss of Rs 275: Nirmal Bang
Src: Economictimes.Indiatimes.com
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