Move beyond 10179 – 10058 would dictate the near term direction
“Our markets had a quiet start as indicated by the SGX Nifty early in the morning. However, we witnessed a sharp decline of nearly 100 points from day’s high in merely 15 minutes towards the tail end of the initial hour. Despite this, index managed to reclaim the 10100 mark as we saw decent recovery during the remaining part of the day; courtesy to massive buying interest in the pharmaceutical space.
Since last couple of days, the Nifty was struggling to carry the momentum after hitting fresh record highs on Monday. This resulted into a decent profit booking from the skeptical traders. However, the ’89 EMA’ on hourly chart acted as a sheet anchor and hence, the index recovered smartly after precisely testing this key indicator around 10060. This is what we have been mentioning since last few days, a trader should ideally avoid trading in the index and focus on individual stocks. We continue to advise the same and now, one should keep a close watch on important trading range of 10179 – 10058. A sustainable move on either side would dictate the near term direction for the market.”