Yet another breather after a sharp rally
“Yesterday’s v-shaped recovery was followed by a gap opening with a decent margin. However, similar to recent trend, this early morning lead turned out to be a formality as we witnessed good profit booking in most of the heavyweight constituents. During the day, index largely remained in a small range and all attempts to surpass 10400 were turned unsuccessful. Eventually, we had a flat opening tad below this crucial junction.
We witnessed a strong bout of buying momentum yesterday and ideally after such a smart rally, we should have extended the move convincingly. But, this was not the case as index struggled to sustain above the immediate hurdle of 20-day EMA placed around 10415. Looking at the hourly chart, we still believe that it’s a matter of time we would surpass this barrier and head towards 10500 quite soon. Hence, keeping this thing in mind, any intraday decline towards 10340 – 10300 should be considered as a buying opportunity for momentum traders.
Despite index remaining in a slender range, we did see lot of action in the broader market. And going ahead, it remains to be a prudent strategy to keep focusing on individual stocks with a proper exit strategy.”