Short-term traders can retain positive bias as long as Nifty50 sustains above 10,498 levels on closing basis breach of which may again drag it down towards 10,276 levels
Nifty50 which started with a small gap on the higher side build the momentum to reclaim its crucial resistance level of 10,600 but last hour of sell-off pulled the index towards 10,550 making a small bullish candle on the daily candlestick charts.
A small bullish candle is formed when the index closes higher but there is plenty of movement on either side. The candle would typically have a slightly large body. 50-day exponential moving average and 5-DEMA which are placed around 10,614 levels. Investors are advised to stay long with strict stop losses below 10,498 levels, suggest experts. Given that most of the volatility is caused by global factors, traders should use bounce back towards 10,700 to book profits or close long positions. the element of risk is high due to uncertainty in global markets traders are advised to close their long positions as we head towards 10,700 levels owing to weekend factor in next trading session