Sep 30,2020-Take stock-specific approach, avoid leveraged exposures.

After two days of strong short covering, it was consolidation time for the market on Tuesday. Indian equities traded in a range-bound manner throughout the day and ended on a flat note without taking any directional call.

Wednesday's session will see the levels of 11,300 and 11,330 act as immediate resistance points, while support will come in at 11,165 and 11,070 levels.

The level of 11,200 Call has seen a significant amount of Open Interest addition throughout the day. There are possibilities that Nifty might find some support at this level in the short-term. However, it is unlikely that the index will show any major move on either side and continue to consolidate and oscillate within a defined range. If pullback resumes, the index might test the 50-DMA again.

We recommend traders to continue adopting a highly cautious and stock-specific approach while avoiding leveraged exposures in the market.

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