NEW DELHI: The Nifty50 traded in a narrow range on Wednesday to eventually settle higher.
This was the third consecutive session when the index defended the 10,700 level and made a higher highs and higher lows, suggesting that supports for the index are shifting higher.Wednesdays was the second session when the index rebounded from the 10,690 level, making this level a reliable base.Optimistic traders should shift their stop losses at 10,690.
On the higher side, we do not see any convincing signal to signal strength to surpass the strong resistance zone at 10,780 and 10,800 levels.
Since the index is stuck in a range, its advisable to remain light around the higher band and should ideally focus on individual stocks, which may offer better trading opportunities in the consolidation phase, said Sameet Chavan of Angel Broking.For the day, the index rose 23.90 points, or 0.22 per cent, to close at 10,741.
The price action appeared to be somewhat positive, but the Nifty50's inability to get past its recent corrective swing high of 10,784 is clearly suggesting that the market is adopting a cautious stance, said Mazhar Mohammad of Chartviewindia.in.The index may remain rangebound for a couple of sessions going forward.
Hence, traders should not be surprised even if Nifty50 revisits the recent low of 10,600 level, but its breach on a closing basis shall enhance selling pressure on the indices.
Unless the critical resistance point of 10,784 is cleared decisively in the next couple of sessions, traders should not expect a directional move.
It looks prudent to remain neutral on the market by adopting a stock-specific approach, Mohammad said.