Though the domestic market had a lacklustre session on Tuesday, it remained technically important and was more-or-less on the expected lines.
The Nifty saw a shaky opening, scaled higher to mark the days high but then remained listless while paring gains and finally dipping into the red.
There was volatility, but the market moved in a defined and limited range.At the end, the Nifty50 ended the day down 52.45 points or 0.51 per cent.
The technically important thing was that Nifty faced resistance precisely in the 10,180-10,250 zone.
It did attempt to move past the 10,250 mark, but pared those gains.As we step into Wednesdays trade, this zone will remain critically important zone for Nifty and the market will have to move past this to avoid fresh weakness from creeping in.
On Wednesday, Nifty is likely to see the 10,250 and 10,310 levels play out as immediate resistance.
Supports should come in at 10,180 and 10,110 levels.The Relative Strength Index or RSI stood at 38.3970 on the daily chart and it remains neutral showing no divergence against the price.
The daily MACD remained bullish as it traded above the signal line.
No major formations were observed on the candles.Overall, Wednesdays session will be technically important if Nifty has to continue with its attempt to form a temporary base near the current lows.
If this technical pullback is to continue, it would be imperative for Nifty to move past 10,250 level.
Even if the market does not change its trend, a technical pullback which takes Nifty past the 10,380-10,400 zone cannot be ruled out.
Caution is advised for the day ahead.STOCKS TO WATCH:Resilient technical setup was observed the counters of Just Dial, Jindal Steel, India Cements, Usha Martin, Asian Paints, Dr.
Reddys Laboratories, Redington, Kaveri Seeds, LTFH, Biocon, Reliance Capital and First Source.(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara.
He can be reached at milan.vaishnav@equityresearch.asia)