The Indian stock markets began the day with a subdued start, as indicated by the GIFT Nifty. However, shortly after the opening bell, the Nifty50, the benchmark index, experienced significant profit booking, causing a decline towards 20770. Nevertheless, the bulls quickly responded from a crucial support zone, leading to a modest recovery in the latter part of the trading session. Despite the back-and-forth dynamics, the Nifty50 ultimately concluded the volatile session with a marginal gain of 0.10 percent, settling just above the 20900 level. As anticipated from the previous trading session, a subsequent bout of profit booking materialized in the market. Despite this, the bulls, displaying a robust undertone, seized the opportunity for a strong comeback. They not only offset the early losses but also concluded the session on a higher note. From a technical standpoint, there have been minor changes in the price chart. However, the presence of a 'long-legged Doji' formation suggests a likelihood of increased volatility in the near future. Regarding key levels, the previously mentioned 20800-20900, followed by 20600, is expected to act as a robust demand zone. As long as the market maintains above these levels, dips are likely to be in favor of the bulls. On the upside, the levels of 21000 pose a significant challenge, followed by 21100, representing the reciprocal Golden (161.8%) retracement of the recent decline. Looking ahead, our positive stance is maintained with a strategy of 'buy on dips' in the current market conditions. Despite the potential for the indices to undergo a range-bound movement, there remain ample opportunities in the broader market. This encourages a stock-centric approach while staying vigilant about global developments, ensuring traders are well-informed and prepared for market fluctuations.
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