Nifty to remain in a range of 9855 – 10000 for a while
“It seems that the traders’ community across the globe is quite baffled because of the in-and-out nature of the recent geopolitical developments. Everything looked hunky-dory on Friday and once again some news flow over the nuclear test (by North Korea) early in the morning spooked global markets. This certainly had a rub off effect on our markets as we saw Nifty tumbling more than 120 points from the day’s high. However, a modest recovery in the second half trimmed some portion of losses to conclude tad above the 9900 mark.
Technically speaking, we saw some excitement on Friday after Nifty closing convincingly above the recent hurdle of 9940. But, fortunately, we maintained our neutral stance on the index and advised against participating in the index specific rallies. We have been quite vocal on the fact the index has slipped into a consolidation mode and hence, we are likely to see such kind of surprises in the market going forward. Despite this corrective move, the Nifty has managed to defend the important support of 9855. Thus, 9855 – 10000 would now be seen as immediate range for the Nifty and we would see selling pressure coming in at higher levels. Traders are advised to keep concentrating on individual stocks, which are likely to offer clear trading opportunities.”