Tapered range in index; interest shifted to broader market
“Yet another session opened slightly higher and then the boredom continued for the remaining part of the day. In fact, if we consider the daily range, this was probably one of the tapered days for our markets in the recent past. Eventually, the benchmark index (Nifty) managed to reclaim the 10000 mark on a closing basis.
In last couple of days, the overall intraday activity in index has shrunk drastically; leading to yet another formation of ‘Doji’ on daily chart. It appears that traders have shifted their interest once again outside the index and hence, we are witnessing massive movement in selective counters. Since, there is no major change in the chart structure, we reiterate that one should avoid aggressive longs in the index and should rather continue to focus on individual stocks that are offering trading opportunities in both directions. For the coming session, 10015 – 10043 remains to be an immediate hurdle; whereas, on the lower side, any sustainable move below 9959 would result into some weakness towards 9930 – 9880 levels.”