Podcast Nifty likely to face resistance around 10,710; 3 stocks which could give 8-18% return

Going ahead into a week with F&O expiry and overhang pressure from rising crude oil price along with weakening rupee, the index is likely to witness volatile trade setup in the coming session.

The Indian equity market remained volatile on the backdrop of weak macro factors coupled with negative momentum on the sectoral front.

The Nifty index breached its crucial support level of 10,500 on Wednesday and decisively slipped below 50-day EMA level placed at 10,460.

However, index took a strong support at this zone to rebound upward near its immediate resistance placed at 10,600 levels last week. The index ended on a flat note with 0.08 percent gain on weekly basis at 10,605 levels on Friday.

The index formed a bullish kind of a candlestick pattern on daily charts, and long lower shadows on the weekly basis. The weekly RSI stood at 55 levels indicating no divergence against price while MACD indicated bullish trend as it traded above Signal Line.

Going ahead into a week with F&O expiry and overhang pressure from rising crude oil price along with weakening rupee, the index is likely to witness volatile trade setup in the coming session.

With index retracing upward in the last two sessions, it might continue on upward momentum for a couple of sessions.

However, a profit-booking regime at higher level can't be ruled out, and thus we advise to trade with caution and strict stoploss. We maintain a rangebound trade on weekly basis with 10,750 levels on upside and 10,510 levels on the downside.

Capital Ways Investment Adviser

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