Indian equity benchmark remained volatile throughout the session due to F&O expiry, favoring bears for almost the entire day despite positive global cues. It opened gap up at 4,914.65 levels up almost 26 points from the previous close. It made a high near the open at 4,915.85 and could not hold on its early gains and then fell to make the low for the day at 4,825.05. It closed at 4,839.60 or down 1.01%
For the coming session, 4,800 is the immediate support for Nifty and if this is broken, next support is seen at 4,770/4,730. On higher levels, 4,870 is the immediate resistance for it and any gains above these levels are likely to face stiff resistance at 4,910/4,960. Traders are advised to trade in small quantities and with a strict stop-loss
The indices have closed at the lower end of the intraday range as the bulls were unable to offer support at higher levels during the session. The intraday range specified for the Nifty between the 4950 / 4825 has held as the Nifty bounced exactly from 4825 levels, thereby validating our intraday counts. The coming session is likely to witness resistance at the 4900 levels on advances. Support is likely at the 4775 levels below which the 4700 maybe tested. The bullish pivot for the session is likely at the 4885 levels above which the Nifty must stay throughout the session. The bearish pivot is at the 4850 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 an inside day, indicating that the market forces found equilibrium on the downside. Being a weekend session loaded with a major news trigger (Fed announcement), the market players are unlikely to make very large bullish bets. Staying above the 4885 level with higher volumes and open interest will see the bulls getting a chance to come back. The Nifty sustaining below the 4850 levels may trigger a fresh bout of declines.
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