2993: Hot Stocks | Can bet on Deccan Cements, Tata Communications, Welspun Corp for short-term
Nifty fell 163 points on the back of weak global cues to close at 11,768 on October 26, its lowest level since October 16. The short-term trend of Nifty turned bearish as the index has closed below its 5 and 11-day EMA. Moreover, during the last two-weeks, Nifty has reversed south from 12,018-12,025 levels three times, which indicates tough resistance at those levels. Therefore, unless Nifty closes above 12,025, the short-term trend will remain bearish. On the downside, immediate support is seen at 11,717 where a 20-day SMA is placed. Nifty has never closed below its 20-day SMA in the month of October. In the options segment, we have seen Put writing at 11,700 levels. A recent swing low is placed at 11,660 levels. Therefore, we believe that correction is likely to accelerate if Nifty closes below 11,660.
