Yesterday, Nifty closed below the psychological mark of 5,500, after forming lower top lower bottom both on daily and hourly charts, which indicates that bears are still having an upperhand. After yesterday`s spinning top candle (indicating indecision), today`s move was signaling continuation of the trend on downside,``
``Hence we feel that if at all Nifty bounces back from the lower channel, due to the oversold condition on hourly chart; it will not go past the hurdle of 5,552, which is the hourly swing high. But the overall view is still bearish and we are looking out for the target of 5,195 in the near future. So, any bounce from current levels should be used for adding fresh shorts,`` it added.8
The indices have closed in the lower end of the intraday range as the bulls were unable to offer follow up support at higher levels during the session. The intraday range specified for the Nifty between the 5550 / 5400 held as the Nifty trended within these levels, thereby validating our intraday levels. The coming session is likely to witness resistance at the 5500 levels on advances. Support is likely at the 5410 levels below which the 5360 maybe seen. The bullish pivot for the session is likely at the 5475 levels above which the Nifty must stay throughout the session. The bearish pivot is at the 5450 levels below which declines may occur. Traders must watch these levels for signs of trend determination in the coming session.
The daily candle chart of the Nifty shows a larger bodied bearish candle after three consecutive spinning tops, which indicates the domination of the bears in the market place. The downward sloping trendline remains a formidable resistance for the bulls to overcome. The Nifty (spot) must stay above the 5475 levels sustainably with volumes and open interest expansion to rally intraday on Wednesday. On the flip side, sustaining below the 5450 levels may trigger a fresh bout of declines.
The market edged lower, tracking weak Asian shares. The market extended
initial losses to hit fresh intraday low in morning trade. The market breadth was
weak. Stocks remained depressed and some heavy sell-off was witnessed in IT
stocks on the back of weak economic data in the
descend in the morning session and remained below the baseline due to poor
investor sentiments. The market sentiment also remained edgy on concerns over
elevated interest rates, which will crimp corporate profit growth. The market
further weakened on weak European stocks and 51/2-week lows in afternoon
trade. With dampened sentiments, the late trade session remained choppy,
thereby plunging the indices to a broad-based decline. The Sensex and Nifty
lost around 1.1% each. The mid-cap and small-cap indices also closed down by
~1.5%. Among the front runners, Cipla, NTPC, ONGC, RIL and Hero Honda
gained 0.4-2%, while JP Associates, RCom, SBI, Sterlite and Wipro lost 2–5%.
Among mid caps, Rashtriya Chemicals & Fertilizers, National Fertilisers,
Kirloskar Oil Engines, Chambal Fertilizers and Blue Dart Engines gained 3–9%,
while IVRCL, TTK Prestige A2Z Maintenance, Tata Teleservices, Orchid Chemical
and IVRCL Ltd. lost 6–7%.
Markets Today
The trend deciding level for the day is 18,144 / 5,462 levels. If NIFTY trades
above this level during the first half-an-hour of trade then we may witness a
further rally up to 18,250 – 18,389 / 5,491 – 5,525 levels. However, if NIFTY
trades below 18,144 / 5,462 levels for the first half-an-hour of trade then it
may correct up to 18,004 – 17,898 / 5,428 – 5,400 levels
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