Gujarat poll results could swing market either way

The Nifty is trading well above its own 200 Day Moving average, which is now around 9750

The market showed signs of an intermediate downtrend before it staged a partial recovery. The RBI did not cut rates and sentiment is wait/watch mode given the ongoing Gujarat Assembly elections. The central bank indicated that it is somewhat concerned about rising inflation and possible fiscal slippages.

The market slipped till Nifty 10033 on December 06, before it staged a 300-point recovery. That low broke prior support at 10095 (November 15 and Dec 04) and set up a pattern of lower lows. If the pattern of lower lows continues, the next support will come below 10000. FPIs have been sellers