Yesterday, after the gap down opening, Nifty did manage to hold the opening gap all through the day and finally ended with a loss of 51 points at 5,404,
Furthermore, Nifty too broke the support of the lower channel and had started walking down the lower Bollinger band, which is an indication that the ongoing downtrend will continue in the near future and any bounces from current levels should only be used for adding fresh shorts, as we still maintain our bearish view for 5,195,
The indices have closed in the upper end of the intraday range as the bulls were able to offer follow up support at lower levels during the session, aided by bear covering. The intraday range specified for the Nifty between the 5500 / 5360 held as the Nifty trended within these levels, thereby validating our intraday levels. The coming session is likely to witness resistance at the 5435 levels on advances, above which the 5475 maybe tested. Support is likely at the 5375 levels below which the 5340 maybe seen. The bullish pivot for the session is likely at the 5410 levels above which the Nifty must stay throughout the session. The bearish pivot is at the 5390 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 "spinning top" candle (fourth incident in five sessions), which indicates the a lack of clear direction in the intraday range. Note - the closing is above the opening and spinning top itself could imply a near term / temporary exhaustion of the downward pressure. The possibility of a pullback or even sideways trading is fair. The downward sloping trendline remains a formidable resistance for the bulls to overcome. The Nifty (spot) must stay above the 5410 levels sustainably with volumes and open interest expansion to rally intraday on Thursday. On the flip side, sustaining below the 5390 levels may trigger a fresh bout of declines.
The outlook for the markets on Thursday is that of guarded optimism as the bulls will have to keep the Nifty above the 5410 levels sustain ably. Expect a mild pullback / consolidation.
The key benchmark indices tumbled to five-week low at the onset of the early
trade, tracing weak Asian stocks. The market breadth was weak. Investor
sentiment also seemed to be impacted on concerns about fading corporate
profitability as well as global worries over
continued its descend in the morning session and remained below the baseline.
Pressure was witnessed among the Sensex heavyweights – Bharti Airtel slid on
weak 1Q performance, while L&T displayed some weakness ahead of results.
The indices recovered some of the losses during the early afternoon session just
to reverse the direction later. The indices remained plunged, buoyed by
pessimisms, leading to a choppy late trade session. The Sensex and Nifty lost
0.3% and 0.7%, respectively. The mid-cap and small-cap indices also closed
down by ~1.5%. Among the front runners, RInfra., ITC, Tata Power, Hindalco
and ONGC gained 0.4–3%, while L&T, Tata Motors, DLF, Baja Auto and Jindal
Steel lost 2–4%. Among mid caps,
Fluorochemicals and Orchid Chemicals gained 5–8%, while IVRCL, Jubilant
Foods,
Markets Today
The trend deciding level for the day is 17,935/5,402 levels. If NIFTY trades
above this level during the first half-an-hour of trade then we may witness a
further rally up to 18,011 – 18,081/5,425 – 5,446 levels. However, if NIFTY
trades below 17,935/5,402 levels for the first half-an-hour of trade then it may
correct up to 17,864 – 17,789/5,382 – 5,358 levels.
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Disclaimer : This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. And not soliciting any action based upon it. The report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon such. We or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report
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