The index is comfortable trading above 100-day moving average as well as 5, and 13-DEMA on the daily charts which is a positive sign for the bulls, but for bulls to regain control, the index has to hold above 10,900 levels, suggest experts.
The advance-decline ratio was on the whole balanced and therefore the current bounce should be taken with a pinch of salt, suggest experts as the pain may not be over yet.
Investors are likely to keep an eye on movement of crude oil price and rupee vs USD, both of which are unfavourable for the economy currently.
The Nifty50 index broke below 100-days moving average (DMA), as well as 10,650 and the next big support is placed at 10,550, suggest experts.
If the index has to move higher, it has to negate the formation of lower highs by moving above 10,785 to witness a bounceback move towards 10,850 and then towards 10,929
Five consecutive sessions of fall appears to have dragged down the Nifty50 into oversold territories from where a bounce back looks inevitable, experts said, adding the pull back rally may take Nifty to 10,900 levels.
As the index is heading for an oversold zone with a fall of almost 5 consecutive days some bounce back can’t be ruled out in next one or two trading sessions.
market managed to hold on to its crucial support of 10,812 levels, there could be the possibility of pullback rally in the coming session, experts said, adding 10,900 could be next crucial level for a further rally.
The index has to hold above 10850 zones which is the 50% retracement from 10583 to 11118 levels while on the upside hurdles are seen at 10985 zones, suggest experts.
Global cues, macro data as well as earnings will be something which investors will watch out for
Short-term traders are advised to book profits below 11043 kinds of levels whereas positional traders with multi-week time horizon can remain cautiously optimistic and look for a bigger target placed around 11350 with a stop below 10987 on a closing basis, suggest experts.
Traders are advised to remain long with a stop below 10980 levels on closing basis and look for a bigger targets placed around 11400 levels, suggest experts.
Analyst advise investors to continue holding long positions and add fresh positions only after a breakout above 10985 which could open room for the index towards higher levels of 11080-11200 levels.
As long as Nifty sustains above 10,813 one can retain positive stance on the indices but a major sustainable move should be expected only on a close above 10,987 levels, suggest experts.
India VIX fell sharply by 8.18 percent to 15.72 on February 1 and corrected 11.14 percent last week that is giving some comfort to bulls but it needs to hold below 16 for Nifty to get a decisive range breakout above 10,985
If the momentum continues from Thursday's rally then the market could head towards its upper end of consolidation range (10,950), but as it is a Budget day, there could be rangebound trade, experts said.
The index is trading well below its 200 & 50-days EMA on daily charts which is not a strong sign for the bulls. A close below 10630 could trigger a sell signal on Nifty based on Supertrend indicator.
It has to hold above 10650 and to cross above 10700 zones to form a short term reversal pattern else weakness could continue in the market. Support exists at 10580 and then 10535 levels.
Analyst advises investors to position themselves in consumption stocks as well as rural-focused sectors which are likely to benefit the most from the Interim Budget.
Nifty appears to be taking support around its 100-day simple moving average (10,795) which in the past acted as a resistance point.
Overall index has got stuck in a broader trading range of 10,700 to 10,985 zones and requires a decisive range breakout for next leg of rally, experts said.
The Nifty is expected to remain rangebound till it holds the support of 10,825 levels, experts said, adding after this rangebound trade, there could be a possibility of index reclaiming 11,000 levels.
India VIX moved up sharply by 8.69 percent to 18.06 levels. Volatility has to cool down further to get a decisive range breakout.
Investors in the Indian market could make a note of movements in Brent Crude prices. The commodity has crossed $61 per barrel but is still off its high points from the past year.
Experts expect the positive momentum to continue in coming sessions if the Nifty holds 10,800 levels on closing basis. ICICIdirect has buys on Siemens and Bharti Airtel.