9840 – 9860 to act as immediate hurdle now
“Once again, the mounting geopolitical concerns spooked our markets as we witnessed a gap down opening with a cut of nearly three tenths of a percent. Subsequently, there was no respite as we saw markets tumbling throughout the remaining part of the day to eventually conclude tad below the 9800 mark.
Due to last couple of weeks’ price action, we saw formation of a small ‘Triangle’ getting developed on daily chart and yesterday’s high was precisely at the higher end of the pattern. Hence, we expected 9930 – 9948 to act as a sturdy wall and the mentioned resistance zone clearly proved its significance. We have been quite vocal since last couple of days that traders shouldn’t get carried away by this bounce as such moves in a consolidation phase are generally deceptive. Going ahead, any intraday bounce towards 9840 – 9860 is likely to get sold into and hence, traders should refrain going long in the bounce back (if any). On the downside, 9740 – 9685 levels are to be retested soon.”