Use rallies to short Nifty; 3 stocks which could give 6-14% return in October series

We are of the firm view that market is in an intermediate downtrend and top for the year is in placeat recent highs of 11,760 levels, says Mazhar Mohammad.

If Nifty closes above 11,17o, the next resistance level stands at 11,350 levels and if there are signs of weakness around these levels, one can initiate fresh shorts with a target placed between 10,700– 600 kind of levels, Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, said in an interview with Moneycontrol’s Kshitij Anand.

At this juncture after taking a hit of around 8 percent from the highs of 11,760 with 4-weeks of continuous fall, we should expect some pullback rather than looking to go short at current levels.

Even Friday’s price action is suggesting that the market is finding some buying interest around recent swing low of 10,866 levels.

Why we say that because market witnessed a decent recovery without undergoing panic even after it breached the recent low of 10866 levels which is usually considered as a bearish sign. The index hit an intraday low of 10,850 on Friday.

However, we need to see to what extent and with what strength market registers this pullback in the coming week. Bulls should be able to regain control if Nifty50 manage to close above 11,170 levels.

If the index closes above 11,17o then the next resistance level stands at 11,350 levels. On signs of weakness around these levels, one can initiate fresh shorts with a target placed between 10,700–600 kind of levels.

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