Podcast | Stock picks for March 23, 2018: Top three stocks which could give up to 11% return

The Nifty eventually broke its 200-DMA on Monday and corrected towards the crucial support of 10033.35, as this level coincided with the previous weekly swing low.

However, bulls somehow managed to defend this level which was also supported by the extreme oversold condition of momentum oscillators on the hourly chart. As a result, the index retested the daily 200-DMA but failed to close above the same.

Looking at the daily chart of Nifty, we can see a bullish divergence which was one of the reasons for a recent pullback. At this juncture, we maintain our view that 10033 will be a crucial support on Nifty.

Any decisive closing below this level could well trigger fresh sell-off and in that case, the index may slide towards 9950. On the other side, the recent swing high of 10227 will act as a near-term hurdle above which index might rally till 10345.

Options data is also indicating towards a range bound trade for Nifty for remaining days of March Expiry. Aggressive put writing has been seen at 10000 strike option and it will continue to act as a strong support for nifty whereas on higher side heavy call writing is visible around 10200-10500 option.

A break below 10000 levels will shake the confidence of bulls and in that scenario, Nifty can see a sharp correction towards 9800-9750 levels in short term.