By Rahul SharmaAs a breakdown is visible on the charts, the Nifty could unfold a potential leg of down-move initially until 9,786 levels, according to technical analysts.
However, a minor pullback cannot be ruled out and intermediate resistance for the index is now placed at 10,200-10,300, they said.
One can look to buy Bajaj Finance, Hindustan Unilever and Titan for upsides of 10-12 per cent from the current levels with stop loss at 5 per cent, they suggested.Where are WeRs The Nifty is fast approaching the 38.2 per cent retracement of 9,875 on the monthly charts of the previous rally which began from Feb 2016 and ended in August 2018.
On the larger trends, 38.2 per cent retracement levels have acted as major support zones in the past.
The INR is showing signs of some strengthening as against the USD which should bode well for the markets.
Crude on the other hand has already corrected and it would be important to see if it starts its uptrend again.
IndiaVIX is close to the demonetisation and 2018 Budget highs which is indicating a possible topping out around these levels.What is in StoreRs Market wide OI is down significantly from the peaks, indicating the weak hands are out of the market.
The Highest Put OI in Nifty November and December series is held in 10,000 Puts which is indicating that markets may honour the level of 10,000 in the next two months.
The Bank Nifty is currently trading with a very narrow OI concentration range (25,500 Calls and 26,500 Puts), which is indicating some consolidation in the banking index.
There is divergence seen in the Nifty Midcap 50 and Nifty Midcap 100 Index as compared to the other broader indices.What You Could Do: The best strategy to adopt now is to buy Nifty futures around 9,800 level with a stop loss of 9,400 and target of 10,700/11,000 in the next two months.
Option traders can look to buy the Nifty March 2019 11000 Call Options around Rs 125-150 for participating in the upside from the current levels.
Among other indices, Nifty IT Index is expected to remain negative, whereas consolidation/positive action can be expected in Nifty Private Bank and Nifty Midcap.
One can look to buy Bajaj Finance, Hindustan Unilever and Titan in the current volatility for an upside of 10-12 per cent with stop loss at 5 per cent.Head - Technical Derivatives Strategy, Centrum Broking