By Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Yesterday after a flat start, our markets witnessed an open-high scenario as from the word go Nifty witnessed selling pressure. For the first half, Index witnessed a gradual fall however in the second half after no signs of recovery the selloff aggravated and eventually ended with a loss of 1.69% at 10818.
For the last six weeks, Index is trading in a broad range of 11100-11180 on the higher side to 10750-10640 on the lower side. Following the broad base buying during the last week and strong close on Friday we were of a view of Index breaking the higher boundaries of above-mentioned range however fresh geopolitical tension has spilled water on the optimism and momentum is now back with the bears. The way we broke below crucial supports with ease does not augur well for the bulls and for the coming session, if we see a follow-up sell-off then they are chances of testing lower boundaries at 10750-10640 levels. On the flip side, previous support around 10900 can now act as immediate resistance and for the bulls to make a comeback they will have to close above yesterday's open-high of 11000 with broad-based buying. Traders are advised to keep positions light as the volatility is likely to remain high."