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We have been witnessing strong volatility for the last couple of days. On June 10, Nifty remained in the range of 10,050 -10,150 and finally closed near the high of the day.

Nifty50 is trading in a rising channel pattern and has tested its long-term moving average (100-days SMA) at the start of the week continuing its prior uptrend.

After a straight rally of almost 1,000 points, the market is likely to take a breather and profit-booking from the current level cannot be ruled out.

The overall index continues to hold above its all exponential moving averages (21, 50, and 100) on a daily time frame, which holds our positive outlook to 10,550 levels.

Market breadth remained in favour of bulls. There was a couple of gainers to one loser by the end of the day.

In case the index violates the 9,900 level, a sharp decline will take place. This could drag the index to test the gap levels it left in the last week of May near 9,550–9,600 levels.