Nifty remained in a 167 point range and managed to defend its previous day's intraday low of 10281 at close and formed a small bullish candle on the daily chart.
After opening lower at 10235, Nifty hit an intraday low of 10194 and a high of 10361 amid volatility.
After another session of volatile trade, Nifty closed slightly lower, the expiry day for June derivative contracts, but as the closing was higher than the opening, the index formed a bullish candle on daily chart.
Lack of follow through sell off with a rangebound move of 167 points on expiry session in the Nifty is suggesting that Wednesday's sell off can be just a reaction to the global cues. Hence, if the bulls manages to defend today's low of 10194 in the next trading session, then a sideways move with an initial target of 10361 can be expected.
Following the F&O expiry, our markets were also volatile and undecided, finally ending with a negative bias for the day.
This was also in sync with generally lacklustre global markets. Cautiousness was visible as the IMF revised their GDP growth outlook for India and the infections continued to rise. Sectoral indices were also mixed with FMCG being the highest gainer. There seems to be some fatigue building into the markets and investors are advised to be cautious.
Nifty is placed at the hurdle at 10550 level (on the daily and weekly timeframe chart). Further slowdown in the downside momentum could eventually make bulls to comeback from the lower level.
Nifty is still negative. Lack of sharp follow through weakness could bring some hopes for bulls in the short term. A sustainable move above the intraday resistance of 10360 could mean possibility of further upside bounce. On the other side, a move below 10277 is expected to drag Nifty towards the next lower support of 10000 level in the near term.
In the next trading session, if the bulls manage to defend the day's low of 10194 then a sideways move with an initial target of 10361 can be expected.
A close above 10361 can take the index towards 10520/10750 levels.
Trend reversal in the favour of the bulls shall not be expected unless the Nifty closes above 10520. A breach of 10194 will confirm weakness in the prevailing trend.
Sector Wise : Except FMCG and pharma other indices ended lower, while Midcap and Smallcap indices ended higher.