6 February 2015


The market seems to be in a sluggish mode as it winds up trade for the week. The Nifty just managed to rise above 8700-level. Market slipped in red today on muted earnings and worries that the Bharatiya Janata Party may face defeat in Delhi elections. Nifty index came under pressure and closed in negative for sixth day in a row, weighed down by losses in auto, banks, capital goods and power stocks.  The Nifty closed at 8661 down 50 points. It touched a high of 8726 and a low of 8645 in trade today. Total 81 points was moved by nifty throughout the day. For Monday  if the Nifty manages to take out the level between 8685 and 8710 successfully then we can expect it move up further and probably test the strong supply zone that lies in the range between 8745  and 8765. On the other hand, so long as the Nifty does not fall below the support area between 8645 and 8620, the bulls can again stage a pullback rally.
However, the range between 8760 and 8775 would emerge as a strong supply zone, once if these levels will cross 8800 will be the next target for bulls. At the other side if down trend will take place then 8600 will act as highest supporting level for nifty. Traders worry that elections in the national capital, due on Saturday, may show loss of popularity for the ruling BJP and become a drag on the awaited reforms, while Arvind Kejriwal-led Aam Aadmi Party (AAP) may go for populist measures, if it comes to power. There is also a cautionary trend prevails ahead of the GDP and inflation data due next week after the central bank held interest rates steady on Tuesday, leaving its next move probably until after the government's annual Budget on February 28.
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RESISTANCE: 8680, 8720, 8760
SUPPORT:  8640, 8600, 8560

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