The Nifty
future opened with a big gap 10344 on the upside but failed to hold onto
momentum and closed at 10298 below its opening levels making a small bull
candle kind of pattern on the daily charts on Friday. The index which
started with a bullish note after rating agency Moody’s, upgraded Indian
government bond rating to Baa2 from Baa3, while changing the outlook to stable from
positive came as a big surprise to the market. The Nifty future opened
at 10344 and rose to an intraday high of 10373. But, the index witnessed profit
booking at higher levels as the index recorded an intraday low of 10292 before
closing the day at 10298 up 48 points.
It was
looking more like a spontaneous reaction on the part of bulls cheering the
positive news flows as intraday gains were capped at critical resistance point
placed around 10380 levels. Hence, it will be important to observe next
trading session price action, as follow-up buying may confirm that trend has
indeed reversed in favor of the bulls though the confirmation for the same
shall come once Nifty future manages to sustain above 10400. Recently, it
negated the formation of lower highs – lower lows and now needs to hold above 10350
zones to get the stability for next up move towards 10380 then 10400 zones
while on the downside supports are seen at 10250 then 10200.
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Resistance: 10400, 10430,
10465
Support: 10250,
10200, 10175
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