Stay long on Nifty, with a stop at 10,125

The bounce came from support at 9,675-9,700, which has held on the past two downtrends

The market soared in pre-Diwali trading. Strongly bullish global trends, excellent results by Reliance Industries and high liquidity translated into new highs. The Nifty hit 10,251 before seeing some profit-booking.
 
Although foreign portfolio investors (FPIs) remained net equity sellers, retail and domestic institutional buying picked up. The Nifty stayed comfortably above 10,200. Obviously, the new highs confirm the long-term trend remains bullish. This is a new zone so, target setting is hard. Depending on levels of optimism, any target between 10,400 and 10,650 could be hit. The bounce came from support at 9,675-9,700, which has held on the past