Technically, the market is open both side and big moves would give a trading opportunity either way, the market traded both ways as expected… It opened with a massive gap down and it tried climbing up but somehow has stayed negative… The market is over stretched and has the potential to bounce back and so if the market sees a dip then that dip could be bought a tight bounce back… Strong supports is around 5,000,``
``The support for the Nifty is at 5,000-4,778 and resistance at 5,250-5,340. For Sensex, the crucial support on the downside is at 16,620-15,986 and resistance at 17,500-17,737,``
The indices have closed in the lower end of the intraday range as the bulls were unable to offer support at lower levels during the session, barring some bear covering. The intraday range specified for the Nifty between the 5275 / 5050 held as the Nifty bounced from the 5054 levels, thereby validating our intraday levels. The coming session is likely to witness resistance at the 5175 levels on advances. Support is likely at the 5025 levels below which the 4875 maybe seen. The wide range is due to the high base effect of Mondays range. The bullish pivot for the session is likely at the 5150 levels above which the Nifty must stay throughout the session. The bearish pivot is at the 5100 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 big gap down candle, which was filled intraday but the 5100 - 5110 area will now become the point of conflict between bulls and bears. As advocated yesterday, It took little selling to derail any attempted upthrust and therefore bulls are on the ropes. The downward sloping trendline is now an impregnable resistance for the bulls to overcome. The Nifty (spot) must stay above the 5150 levels sustainably with volumes and open interest expansion to rally intraday on Tuesday. On the flip side, sustaining below the 5100 levels may trigger a fresh bout of declines.
The market internals indicate a lower turnover due to the weakness. The number of trades were lower and the average ticket size per trade was lower, which indicates lack of participation. The capitalisation of the market was lower in line with a bearish session. The put call ratios indicate the bears ramping up their shorts even on declines.
The trend deciding level for the day is 16,999/5,126 levels. If NIFTY trades
above this level during the first half-an-hour of trade then we may witness a
further rally up to 17,239–17,488/5,197–5,276 levels. However, if NIFTY
trades below 16,999/5,126 levels for the first half-an-hour of trade then it may
correct up to 16,750–16,511/ 5,047–4,975 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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