Indian equity benchmark indices snapped a three-day gaining streak on Tuesday amid tepid global mood. Presently, the market is like one where no one knows whether it is the bulls in control or bears. Just for the day, there is a premonition of a rally and decent rally based on three or four factors.

For starters, Nifty had an inside day yesterday, after the recent rally. What is an inside day? When the high and low both are within the same range of the previous day. Normally a market has a bit of a trend day, after an inside day and the near term trend is positive and Nifty sort of held Monday's low. So in that sense, ingredients are in place.

Monday’s low is sacrosanct 16,506 and the other reason is that in yesterday's trade, a lot of shorts came in the system, anticipating perhaps some negative news out of the US.

If the low holds, perhaps a rally back towards 16,700 as possible. This is a market in which one has to be a scalper, don't expect big trades. If the low is broken, though, or the Monday low then the market has a bit of a problem.

Watch the accompanying video of CNBC-TV18’s Anuj Singhal for more details.

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First Published:Jun 1, 2022 9:06 AM IST