By Mr. Sameet Chavan, Chief Analyst- Technical & Derivatives, Angel Broking Ltd
“We had a good bump up at the opening owing to strong positive cues from the Asian bourses, especially the Hong Kong market (HANG SENG). However, this again turned out to be formality as there was immense selling pressure seen right from the word go. Subsequently, index consolidated for some time in a range before sliding below the 10300 in the last hour of the trade.
The gap up opening beyond 10400 was the perfect start most of the traders dreamt of. But there seem to be no strength in our market as we shrugged off extremely positive cues from the global bourses and eventually ended the session with more than half a percent cut. The positive crossover in ‘RSI-Smoothened’ oscillator is still intact and hence, there is still a ray of hope for the bulls that the recent support zone of 10200 – 10138 would be defended for a while. Let&nb p;see how it pans out as we are nearing the derivative expiry. For the coming session, 10289 followed by 10366 would be seen as immediate hurdles; whereas, on the lower side, 10200 remain to be the level to watch out for.
We reiterate that traders need to be light on positions and should rather adopt a stock centric approach by following strict stop losses.”