Tomorrow will be the result for Reliance.... For outlook on Reliance result or view on different stocks please visit CASH TRADING TIPS
The market saw a sort of a meltdown in today’s trading session—the index fell sharply and hit the low of 8645 only to recover a little to close at 8706. Sensex on Thursday fell over 133 points to close at a one-week low of 28666. With IT shares coming under selling pressure on caution ahead of TCS results. Nifty also dropped by 43 points to end at 8706 after shuttling between 8760 and 8645 intra-day. Despite the fall being so sharp and widespread, neither the bears nor the bulls had the required confidence to really build more positions primarily due to the fall happening in today’s session; this is borne by the fact that both the call and the put options saw significant unwinding during the session. What we saw on the end-of-day bar chart is a one-day bar reversal at the top. Secondly, the same pattern—in this case—also shows a bearish engulfing pattern at the top: Thus, the overall impact is likely to be negative since the price bias is clearly bearish.
Nifty will continue to face resistance at 8820-8850 levels for the moment. Primarily, because the recent attempt that Nifty faced a good resistance at 8820-8850 band should hold for a moment. I nifty could possibly be a testing of a support level which if you look at the Put distribution at this point in time for Nifty it is concentrated at 8600 and technically if you look at it the worst case situation could it at 8200. So my sense is that there could be a testing of the support before Nifty was to march and go beyond 8900 or 9000.
The market saw a sort of a meltdown in today’s trading session—the index fell sharply and hit the low of 8645 only to recover a little to close at 8706. Sensex on Thursday fell over 133 points to close at a one-week low of 28666. With IT shares coming under selling pressure on caution ahead of TCS results. Nifty also dropped by 43 points to end at 8706 after shuttling between 8760 and 8645 intra-day. Despite the fall being so sharp and widespread, neither the bears nor the bulls had the required confidence to really build more positions primarily due to the fall happening in today’s session; this is borne by the fact that both the call and the put options saw significant unwinding during the session. What we saw on the end-of-day bar chart is a one-day bar reversal at the top. Secondly, the same pattern—in this case—also shows a bearish engulfing pattern at the top: Thus, the overall impact is likely to be negative since the price bias is clearly bearish.
Nifty will continue to face resistance at 8820-8850 levels for the moment. Primarily, because the recent attempt that Nifty faced a good resistance at 8820-8850 band should hold for a moment. I nifty could possibly be a testing of a support level which if you look at the Put distribution at this point in time for Nifty it is concentrated at 8600 and technically if you look at it the worst case situation could it at 8200. So my sense is that there could be a testing of the support before Nifty was to march and go beyond 8900 or 9000.
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RESISTANCE: 8800, 8850, 8900
SUPPORT: 8750, 8700, 8650
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