Market corrected from corridor of uncertainty, 10329 – 10410 becomes a sturdy wall
NewsPatrolling.com : “Our markets opened on a flat note owing to subdued Asian bourses. During the initial hour, the index managed to display some strength; but, as expected, this early morning move beyond the 10300 mark got sold into and eventually index kept on crawling with a cut of 0.80% from its previous close. Similar to Monday, this time too, the banking index contributed heavily in dragging the benchmark index lower. This was mainly on the back of early morning selling seen in some of the heavy weight private banking counters like, HDFC Bank and ICICI Bank.
In hindsight, we can call today’s move as a classical copy book correction from the 78.6% retracement level (10312 – 10332) as well as the ‘Upward Sloping Trend Line’ resistance. Fortunately, we anticipated this possible move and eventually ended up landing on the right side of it. Now, if we look at the daily chart, the Nifty has slipped below Monday’s low of 10282.05 on a closing basis and thereby signals further weakness towards 10180 – 10150. On the upside, 10329 – 10410 now becomes a stiff resistance zone. We continue to advise remaining light and avoiding fresh longs until mentioned resistances are not broken.”
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