All-time high of 10,490 a key level to watch out for

A highly volatile session on Monday saw the Nifty swing through 350-points before it settled strongly up as the Gujarat election verdict came through. The Nifty hit a low of 10,074 points in the morning before it tested 10,443 on the upside, before finally settling just below 10,400.

The most likely pattern now is range trading again between 10,100 and 10,450. There are signs that the intermediate downtrend marked through the past few weeks is over. There is also a relatively small chance that we’ll see a new all-time high soon.

The rebound from 10,074 set up a pattern of higher troughs