These 3 Nifty plays could return 8-13% in 1-2 months

“If the Nifty holds 10,929 levels, it can bounce towards 11,000-11,020 levels.For the uptrend to continue, 11,080 needs to be taken out decisively,” says Ashish Chaturmohta of Sanctum Wealth Management

After last week’s gains, the markets got off to a negative start with the Nifty losing 0.74 percent on Monday to close at 10,937 levels. Increase in wholesale inflation also piled pressure on the market.

The market breadth on the NSE was in favour of declines with 5 shares falling for every 1 gaining stock. The broader markets were hit hard as the BSE Mid and Smallcap indices lost 2.5 percent each for the day.

The Nifty has formed a long bearish belt hold candle for the day. The index managed to find support at previous high - 10,929 - which will now act as support.

Holding above 10,929 levels, the index can see a bounce towards 11,000-11,020 levels. For the uptrend to continue, 11,080 needs to be taken out decisively.

Trading below 10,929 on a sustainable basis will see further profit booking towards 10,880-10,860 zone. A 38.2 percent retracement of the rise from 10,557 to 11,078 levels and rising gap area of July 10 is seen.

In Nifty options, huge amount of put unwinding was seen at 11,000 from 10,600 strikes and call writing was seen in 11,000 and 11,200 strikes, which suggests that the upside is likely to capped and the market could see pressure on the downside.

India VIX needs to be watched as it is turning up from support levels after seeing a jump of 5.3 percent to 12.95 levels.

Capital Ways Investment Adviser

605, Industry House , AB road Indore (MP) 452001

info@capitalways.com

https://www.capitalways.com/