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Nifty likely to open flat to negative around 10,460; to remain stuck between 10410-10540: Stewart & Mackertich

Taking global cues, Nifty is expected to open flat to negative around 10,460 and likely to remain stuck in the price band 10410 to 10540, says a report by Stewart & Mackertich.

Taking global cues, Nifty is expected to open flat to negative around 10,460 and likely to remain stuck in the price band 10410 to 10540. The Nifty yesterday ended 0.58 percent down at 10,492.85. Gap down opening followed by sharp pull back led aggressive bears to be persuaded into entering short sell.

From technical perspective, Nifty just filled up early morning gap down and retraced back towards ending the session with a Doji candle. Doji candle on daily chart implies indecision among traders. Hence, as the chart pattern suggests, it may remain stuck in the price band of 10,410-10,540.

On the Nifty hourly chart; it remained subdued for the entire session below the 100 hourly EMA placed around 10,520. Short-term chart pattern suggests, it may continue to trade on the weaker side as long as it trades below crucial moving averages.

Nifty patterns on multiple time frames show, sustained closing below 10,580 might again initiate selling spree that may take the Nifty towards 10460 and 10410. Further, we prefer sector and stock specific trading strategies rather Index based ones as far as short-term trading is concerned. Market is likely to manifest uneven volatility due to unpredictable domestic cues.

Yesterday, Bank Nifty ended at 25,107.40 (down 1.09 percent). Upside major resistances are placed around 25,200 and 25,350. Downside support is placed around 24,800.

Nifty crucial supports and resistances for the day:

Supports: 10460, 10410
Resistances- 10540, 10580

Below are the stocks which are good buys today:

Buy Tech Mahindra on dips around Rs 610-608 for target of Rs 630 and stop loss below Rs 598

Buy Infosys on dips in the price range of Rs 1165-1163 for target of Rs 1178 and Rs 1193 and stop loss below Rs 1148

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
www.shristocktips.com

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