Technically, 10929 will be important resistance level to watch out for. Also, as long as Nifty trades below 10800, 10749, chances of profit booking remains high.
The Nifty50 has almost rallied around 4 percent in the last two sessions and there is a possibility that it can undergo some profit booking in the next one or two sessions.
Technically, much of the Tuesday’s rally could be on the back of short coverings but for bulls to take control, Nifty has to surpass and close above its 200-DMA placed around 10750.
D-Street will first react to Dr. Urjit Patel's resignation as the RBI Governor which may create a temporary flutter in the markets, apart from that outcome of state polls is likely to chart the direction of markets.
The coming week will be guided by macro data as well as state election results. Apart from that movement of crude oil price, rupee FIIs flows as well as trade talks will be guiding factors.
Both Sensex and Nifty broke below crucial support levels which is a sign of worry for investors in the near-term.
The outcome of the MPC committee was the driving factor behind the small recovery which we saw in the market. The RBI maintained the status quo on its crucial repo and reverse repo rates.
It looks like the market has already priced in the uncertainty the way it has been moving in a narrow range since last Friday.
There is some caution ahead of the outcome of the RBI's monetary policy review meet which triggered profit-taking as the session progressed, suggest experts.
Experts expect the volatile movement to continue in near term. The rally is only possible if the Nifty crosses 10,774 levels.
Nifty formed a bearish candle after three bullish candles which is a sign of exhaustion. The expiry is likely to happen in the range of 10400-10700 levels.
Analyst expect the index to witness some consolidation before resuming its uptrend towards 10900-11000 levels. On the downside, immediate support is seen at 10500-10530 levels.
Crucial resistance level for the Nifty is placed at 10740-10800 while supports are placed at 10,500-10440.
The Nifty registered a breakout above 10710 levels but will still remain vulnerable to sudden bouts of volatility as it trading inside the bearish gap zone of 10754 – 10840 levels registered on October 4.
The index has to continue to hold above 10,550 zones to witness an up move towards 10,650 then 10,750 zones.
Experts suggest investors to stay long on the index with a stop below 10,440 levels. A close above 10,650-10700 is required for bulls to regain control.
Important support for the index is placed at 10440 and a break below this level could take the index towards 10,333.
If the bulls fail to push the index above its immediate hurdle at 10,550-10,600 zones then profit booking may take it towards next support of 10,350 zones.
Technically, Nifty has to continue to hold above 10,525 zones to extend its move towards 10650.
Investors tried to shrug off all the negativity that it has been undergoing for the past few weeks. There was some resilience to the global selloff observed during the last week.
Good thing is that crude cooled off slightly which helped OMC stocks in the previous trading session but the rupee still closed above 74/USD
The short term downtrend remains intact and failure near 11,100-11,150 would set in the next leg down.
Investors should use pullback rallies to exit long positions, suggest experts.
The big news today would be rupee. The currency which touched a record low of Rs 71.23/USD as concerns over rising crude oil prices and trade war tensions continued to hurt forex market sentiment.
Markets will continue to remain volatile as traders will roll-over their positions in the F&O segment from August 2018 series to September 2018 series.