On 08/10/2018 markets opened on a subdued note traded with extreme choppiness but finally managed to close in green. On the sectoral front Oil & Gas, Energy and Auto ended with decent gains whereas Realty, Metal, Capital Goods, IT and Teck ended on the losing side. The advance decline ratio was in favour of declining counter (Advances = 734/Declines = 1910).
Pattern Formation: On the daily chart, we are observing a spinning top candle stick pattern at the demand zone.
Outlook: In view of the above pattern formation it is evident that prior down trend is losing breath. Hence, a bounce back from current level cannot be ruled out. In coming trading session if Nifty trades above 10405 level then it may test 10450 – 10500 levels. On the downside, 10300 – 10250 may act as support for the day.
Broadly, we are of the opinion that the trend remains down and pull-back rally is likely to attract selling pressure. Hence, one needs to adopt cautious approach towards the market.
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