Indian stock markets witnessed volatile session on Tuesday as the election results pointed towards hung assembly in Karnataka. Markets were trading strong during the morning session as BJP maintained lead against its opponents. However, the market slipped as chances of BJP government in the state reduced due to post-poll alliance between Congress and JDS.

Volatility sparks as indecisiveness post Election results prevail while profit booking and rising crude triggers fear amongst investors. Nifty reclaimed the 10900 mark making an intraday high of 10929.20 while bank Nifty inched close to 27K mark after making an intraday high of 26972. Both benchmark indices closed lower than open and erased all the gains since indecisiveness arisen in K'Taka results and profit booking was triggered. The Nifty dragged to 10800 marks while Bank Nifty saw a sharp cut off almost 500 points to close below 26500.

The overall pattern formation on the Nifty daily chart suggests a gravestone Doji which is usually bearish reversal signal if followed with a continuation of sentiment. The long upper shadow indicates the selling pressure Nifty witnessed of over 1%. Bank Nifty ended down with similar pattern with a cut of almost 2% from its intraday high. So in coming session, if we see a follow up selling pressure and further profit booking we may see lower levels of 10690 - 10720. Bank Nifty may see further bearish momentum to take support at 26150 - 26200.

The derivative data suggest the writing is heavy n strikes of 11000 and 10900 so this may be seen as capped upside for bulls while lower level strikes of 10600 - 10500 suggest being an important support in coming days.

Traders and Investors should trail stop losses aggressively to said supports and maintain buy on dips of more than a percent in broader indices.

JUSTDIAL - Stock is consolidating from past few days with average volumes. The stock is trading near to 200 DMA resistance on the daily chart. We recommend to sell around 450- 445 levels for the target of 430 with the stop loss of 465.

SRTRANSFIN - We have seen a good correction in the stock from the higher level but today it took the good support of trend line on daily chart and stock formed a green candle on the daily chart. We recommend buying from current level for the target of 1550 with the stop loss of 1435.

GRANULES - Stock has given a sharp fall in previous trading sessions and trading at 52 weeks low. The stock formed inverted hammer on daily chart in green. We have a good opportunity to make a perfect risk & reward ratio trade. We recommend buying from current level for the target of 105 with the stop loss of 90.