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.
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