A morning walk down Dalal Street | Nifty likely to face stiff resistance at 10,600-10,700

It was a day of consolidation after a blockbuster rally seen last week when both Sensex and Nifty saw a rally of about 5 percent each. The S&P BSE Sensex closed below its crucial level of 35000 while Nifty slipped below 10,550.

The S&P BSE Sensex closed 60 points down at 34,950 while the Nifty50 closed 29 points down at 10,524. 

Technically speaking, 10440 will act as crucial resistance level for the index while on the upside 10600 will act as stiff resistance level for the index.

Among the sectors, the BSE Realty index rose 1.5 percent, followed by the metal index which was up 0.15 percent and banking index gained 0.12 percent. On the losing front, BSE Power index was down 1.6 percent, followed by pharma index and consumer durable index was down 0.5 percent.

The consolidation was visible in the broader market as well. The outlook remains positive from a short-term perspective. Though there are couple of hurdles lying ahead in the range of 10600-10710.

Once these barriers are taken out, then the Nifty can stretch towards 11000-11140, suggest experts.