Nifty- Constructive Price action above 10050.

For the immediate term, both the camps are locked in a fierce battle between 10050 to 9700 and it seems that after yesterday’s action, the bulls can make a comeback provided they take out yesterday’s high and in that case one can expect a trended action towards the recent high of 10330 and in-fact the ideal target for such move higher would be a test of the 61.8% retracement of the entire decline of first quarter. The momentum readings are showing scuttle improvement and along with rejection of lower prices as evidenced by the Hammer pattern, it augurs well for some constructive price action ahead. Once the index triggers a buy above 10050, the ideal stop would be 9540 and if that is too far then employ a monetary stop. Risk management supersedes anything and everything in this game.