A morning walk down Dalal Street: Stay cautious as long as Nifty trades below 10,700

D-Street witnessed a smart recovery in the second half of the session on Monday but it failed to close above 10,700 levels. The index closed below its crucial short-term moving averages such as 5-EMA, 13-EMA as well as 50-EMA in a single session.

Auto stocks remained in focus on account of their monthly numbers with Tata Motors registering a 50 percent rise in sales along with Bajaj Auto registering a 65 percent rise in sales.

The weakness was seen in the broader market which witnessed cut of 0.7 percent. Nearly 300 stocks on the BSE hit a fresh 52-weeks low which includes names like Force Motors, Dalmia Bharat, Century Textiles, Apar Industries, Finolex Industries etc. among others. 

Higher Crude prices and rupee depreciation continued to remain an overhang for the markets.