A morning walk down Dalal Street | Stay neutral, buy on fresh breakout above 10,450

A day of consolidation for Indian markets. The S&P BSE Sensex closed just 10 points lower while the Nifty50 failed to reclaim 10,400 levels.

Sectorally, capital goods index rose 2.3 percent, realty index was up 2.2 percent while the Metal index closed 1.2 percent higher. On the losing front, IT, FMCG, Telecom saw some bit of profit booking.

Technically speaking, analysts feel that if bulls want to maintain their foothold, then Nifty should stay above 10,333 levels to extend its up move towards 10,450-10480.

Also, GST collections in October crossed the Rs 1 lakh crore mark, after a gap of five months, on the back of festive demand, anti-evasion measures helped the sentiment.

The recent steps to ease liquidity situation by the RBI has certainly improved the sentiment but sustainability of this rebound is still questionable, suggest experts. According to experts, as long as Nifty stays below 10,450, markets is likely to consolidate further. On such a breakout next target for Nifty can be in the zone of 10700 to 10840 levels.

Traders are advised to adopt a neutral stance and look to buy on a fresh breakout above 10450 levels or on reaching stability after correction.