Bears defended 10410 on a closing basis, volatility expected to rise further

Newspatrolling.com :“Today, right from the opening tick, our markets moved only on our domestic triggers and did not even bother to have a glance at what world is doing. The initial ten minutes of trade were quite intimidating as the Nifty tumbled more than 250 points in blink of an eye. This was mainly the immediate reaction of Gujarat election tally leaning in favor of Congress. However, this lead did not last quite long and hence; we witnessed a v-shaped recovery throughout the remaining part of an opening hour. Eventually, the Nifty managed to close with gains of over half a percent.  

 

It was kind of jigsaw ride for our markets today as we saw wild swings in the initial hour of the trade. Due to sharp recovery in the first half, the Nifty managed to surpass the recent swing high of 10410 on an intraday basis. But, a closing above this could have been a trend deciding move in the near term and hence, bears somehow managed to defend this level on a closing basis. Going ahead, we continue to see this level as an important hurdle and only a close above this point would negate the cautious approach for while. Till then being a trader, one should keep a close track of the near term range of 10410 – 10319. A breakout from this range would dictate the near term direction for our market. Traders are advised not to take aggressive positions and rather should keep booking profits as we continue to expect a rise in volatility.”