On 04/12/2017 markets opened higher but were unable to sustain the opening gains which led the indices to close on a flat note. On the sectoral front IT, Teck and Metal ended on the gainers side whereas Realty, Energy and Telecom ended on the losing side. The advance decline ratio was in favour of declining counter (Advances = 1138/Declines = 1553).
Pattern Formation: On the daily chart, prices have closed within the demand zone of 10171 to 10094.
Outlook: The current price action on the daily chart suggests that 10094 is crucial support. In coming trading session if Nifty holds 10094 and trades above 10190 level then it is likely to test 10230 – 10250 levels. On the downside, if Nifty trades below 10094 then it is likely to test 10050 – 10000 levels.
Broadly 10094 is a make or break level going forward. Any close below 10094 would confirm lower top lower bottom formation which is sign of weakness. In such scenario selling will intensify. Hence one needs to adopt cautious approach toward markets.
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