Crucial supports broken, stay light unless Nifty reclaims 10750: Angel Broking
“Thursday seems to be bringing some action in our market. Last Thursday, we had a gap up opening and then a remarkable end of the November series. Today too index saw lot of action; but unfortunately, it was on the downside and certainly not the kind of move most of the traders’ expected for. As far as today’s activity is concerned, we opened lower owing to mounting geopolitical concerns and then post some intraday bounce back, once again corrected sharply in the latter half to close at the 10600 mark with a sharp cut of over one and half a percent.
Yesterday’s close was a bit of warning for our markets. However, since 10700 was defended convincingly, there was still a ray of hope. Yesterday, we had stated the scenario about Nifty undergoing some correction if breaks and sustains below the crucial support of 10747. Today, this point has justified its significance and we are well above the crucial supports now. Going ahead, unless Nifty surpasses today’s high of10723, we are likely to remain under pressure and the momentum will get accelerated once Nifty slides below 10588. In this scenario, 10540 – 10489 are the next levels to watch out for. On the upside, 10641 and 10696 would be seen as immediate hurdles for the index.
Traders are advised to keep a note of above mentioned scenarios and should stay light on positions.”