ManagementF&O Outlook: Nifty to hit new high
The FIIs long build-up in the Nifty futures and short covering in stocks futures during the week ended November 13 augur well for the market. The Nifty expected to hit a new high in the coming week if it crosses a crucial resistance at 5,060. On the down side the 4,940 is healthy support and below that 4,860 is the crucial support level. The Nifty rose over four per cent during the week largely due to short covering from the foreign investors in Nifty futures and stocks futures.
According to technical analyst at Sharekhan Research, the hourly oscillators are in sell mode giving negative divergence. Nifty has made triple top above 5,000, so going forward it becomes important for index to surpass it to gain more strength failing which open gates for lower levels. It is expected that the Nifty can move above the 5,100 levels on the back of short covering by the FIIs and fresh long build-up in Nifty futures.