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The gap was closed during the day. But the gap range is still intact. This range is expected to breakout today, nifty may retest 10078 (previous lows) The momentum is showing bullish divergence, which may hinder aggressive sell off.

Though 10026 – 9970 levels probable for nifty. We will have to watch, what effect will this selling have on RSI. We are not suggesting any stocks as of now because we are not getting a appropriate risk reward trade.

Bharat Jhunjhunwala MFTA, CMT, CFTe, MSTA

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