A morning walk down Dalal Street | Nifty vulnerable to sudden bouts of volatility, stay stock specific

Strong global cues, fall in crude oil prices, as well as stable rupee, helped Ithe ndian market climbed crucial resistance levels. The final tally on D-Street – the S&P BSE Sensex climbed 300 points to close at 35,774 while for Nifty50 we saw a rally of 81 points. The index closed at 10,763.

Sectorally, the S&P BSE Realty index rose 1.4 percent, followed by the BSE FMCG which gained 1.2 percent, and the S&P BSE Metal index was up 1.1 percent. On the losing front, PSU, and oil & gas index saw some bit of profit booking. 

The big news from the technical front is that the index climbed above 200-DMA. If you remember, the index slipped below this crucial level on October 4, 2018.

The Nifty registered a breakout above 10710 levels but will still remain vulnerable to sudden bouts of volatility as it trading inside the bearish gap zone of 10754 – 10840 levels registered on October 4. 

Once the index close above 10840 levels then this pull back can get extended towards 11069 levels.