NewsPatrolling.com : “Yesterday’s corrective move was followed by a flat opening tad above the 10700 mark. However, the ‘open-high’ kind of scenario created in early trades as we saw index correcting right from the word go. The Nifty remained under pressure during the first half; but due to a modest recovery post the midsession, it managed to recover fair bit of ground to end the session with a cut of nearly four-tenths of a percent.
Due to last couple of day’s price action, it is quite clear that the market has become a bit vulnerable after the recent relentless rally from March lows. Today, index managed to find a support around the previous breakout point of 10640, which we believe is likely to act as a crucial support for the index. A sustainable move below this would augment the selling to test the sub-10600 levels. However, having said that as long as it manages to sustain above this point, a possibility of making one more attempt towards 10750 – 10800 cannot be ruled out. In this case, traders are advised to start booking profits on existing trades and it would be a prudent strategy to remain light.
Similar to previous session, some of the individual stocks continued correcting fiercely and hence, traders are advised not to remain too leveraged in the market (especially in the high beta mid-cap counters).”