The markets pared early gains made in the morning trade and
were unable to recover from Monday's steep sell-off with the Sensex
ending 102 points lower at 27,459.23 and the Nifty dipping by 24 points to
stand at 8337. The major downward trend can be attributed to the Chinese
shares which sank yet again on Tuesday, a day after Shanghai's steepest slide
in eight years, defying renewed government vows of support that analysts warned
were not enough to settle nervous investors.
Technically, Nifty futures had turned weak having closed
below 8350, the bears had a field day as they hammered the index to a two week
low closing. On the higher side, though 8415 is the immediate resistance, 8438
is the strong supply zone now which must be taken out for signalling that the
slide has stopped. It closed the day around an important level around 8340 and
if this support is breached, it is likely to seek lower levels and then there
will be chances of test o the 200 exponential moving averages around 8275.
Below 8275 there could be a fresh bout of panic. A close above 8550 will,
however, negate the bearish outlook.
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RESISTANCE: 8400, 8450, 8500
SUPPORT: 8350, 8300, 8250
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