Stocks picks of the day: Break below 10,700 may push Nifty towards 10,500

Markets continued their consolidation phase for yet another week and managed to settle marginally higher amid volatility. Firm global cues led positive start which further strengthened in next two sessions with noticeable buying in select index majors, mainly from banking and FMCG pack.

However, upside remained capped as participants preferred to book profit ahead of the beginning of earnings season. In the last two sessions, pressure intensified citing not so encouraging TCS results and mixed global markets. 

Amid all, Nifty upheld the 10,700 mark and finally settled at 10,794.90; up by 0.6%. We believe the prevailing earnings season could provide the trigger for next directional move as cues are mixed from the global front. Nifty has been hovering in a range and it’s now nearing to its breakout. If it manages to cross 10,950, the next target would be 11,100.