The move above the 1.80 mark in US 10-Year bond yield gives an excuse for a correction in the market - Tradingo

Mr. Parth Nyati, Founder, Tradingo

Indian equity market witnessed a sharp profit in today's trading session after a one-way vertical rally. The weakness can be attributed to selling in the global markets after US 10-year bond yield moved above the 1.80 mark during the day. FIIs are net sellers for the last 4 trading sessions while sharp selling around 2:30 PM indicates that we may have another day of selling by FIIs.

Technically, 18300-18350 is a minor resistance zone where Nifty witnessed a bearish engulfing candlestick pattern that may lead to further weakness. Today's low of 18085 is at 9-DMA; below this, 17950/17800 will be the next important support level while 17650 is critical support at any correction however every correction is a good buying opportunity. If we look at the last three years' trend then the market starts to correct between 15-20th January and then it witnesses a post-budget rally amid consensus of the pre-budget rally.

Banknifty was outperforming before 2:30 PM however 38800-39100 is an important resistance zone and 38850 is a 61.8% retracement of the previous fall where it witnessed sharp profit booking in late trade. On the downside, 38000 is an immediate and psychological support level while 37500/37000 will be the next major support level. On the upside, if it manages to take out the 39100 level then we can expect a rally towards the 40000 level.

Source : Equity Bulls

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