Market
falls on first trading day of the week. On monday market witnessed intraday volatility.
Reason was higher global crude oil prices and hike in railway freight rates
have triggered worries of higher inflation in India. The Sensex, and the Nifty
both settled at their lowest level in almost 2-1/2 weeks. The government after
trading hours on Friday, 20 June 2014, announced 6.5% hike in railway freight
rate and 14.2% increase in railway passenger fare to boost revenue of the
railways to meet its annual expenditure. on monday nifty future started at 7538,
made a high of 7550 and low of 7464 and closed at 7508, total 86 points was
moved by nifty future. Nifty future needs to be corrective and bounces back
again or else it breaches the most important support area now between 7510 and
7480 and posts a sharp downswing. The weakness is likely to persist in the
market & for tuesday also we are expecting a downward movement for the
market. If the Nifty will fall below the
support area it needs to post a large down day breach at the level of 7430, if
nifty future doesn’t want to become a bear trap it will have to manage at least
the level of 7455-7470. Else, if a recovery will take place then we need nifty
future to touch above 7570 for a minimum to have some confidence that a
recovery is truly in progress.
Similar
technical pattern seen here as well the two weeks old correction could well
come to an end or we might be dipping down further and testing 14700-14650
major support area. Even the moving averages are also indicating continuation
of the downtrend unless the index takes out 15076 through 15179 supply zone
decisively. Last Friday, it did make an effort, albeit unsuccessfully, to clear
the above supply zone but it failed as the initial gains had been surrendered
later in the day. To expect a sustainable recovery, as of today, we need a
market to be above the 15200-mark while the continuation of the current
downswing would be signaled when the Bank Nifty takes out the 14950-mark
firmly.
RESISTANCE:
7510, 7530, 7550
SUPPORT:
7490, 7470, 7450
No comments:
Post a Comment