Nifty headed towards 10900/11000 levels in expiry week

Categories: Daily Market Outlook
June 24, 2018Posted By Nishant Chauhan

Last week Nifty consolidated in a narrow range of 10830 – 10701. On Friday it made a strong upmove and ended the week slightly positive and formed a bullish engulfing candle on daily charts and dragonfly doji on weekly charts in the process. NSE Midcap and Smallcap indices underperformed during the week and ended 1.15% and 2.6% lower respectively. Pharma index consolidated during the week after outperforming other sectoral indices in preceding couple of weeks. We expect pharma stocks to resume rally in this week and suggest going long in Sunpharma, Lupin and Dr Reddy.

ITC and M&M have found support and saw good comeback by bulls on Friday. HDFC, HDFC bank, Bajaj Finance and Bajaj Finserv look strong and will lead the upmove in Nifty towards 11000 levels.

Rally in crude oil, slow monsoon progress, negative news flow on trade war, weak global markets are some factors that can hamper rally in Nifty. So on safer side close long positions if Nifty slips below 10710.