A volatile session was witnessed with a Doji Formation on a daily scale. A move in w sider range of more than a percent was seen while the close has been to the open of a day. Indecisiveness at lower supports is seen making it a possible case of reversal in coming days. Nifty did breach its previous swing support placed at 10200- 10170 range and a Doji formation indicate exhaustion of bears at lower levels while bulls may capitalize. It will be important to see tomorrow’s price action and a follow-up move.
Nifty has strong support at 10100 – 10050 levels given its a crucial support in this rally as the previous rally to 11700 saw a bottom being made at these levels only. Momentum indicators which are leading in nature re already giving a positive divergence on the daily chart.
The present scenario in the market is like a tug of war between bulls and bears. A swift pullback is expected though it is a matter of time and patience. At this point, we are cautious for bulls, as said before, as a pullback can be seen in the market. Buying at lower levels should be seen with the retest of 10400 – 10350. A close below 10050 will negate this view.