China continued to see turmoil, collapsing another 7.6
percent today while Japan closed 4 percent lower. Markets crashed in the last
session and major indexes reached levels not reached since October last. Dow is
again down by 588 points. Equity benchmarks continued to be volatile in trade
today due to lack of trigger and ahead of expiry of August Nifty derivative
contracts (on Thursday). The Sensex gained 162 points at 25903 and the Nifty
advanced 26 points to 7835.
Nifty future tumbled to levels not seen since last October in a global melt down. On the lower side, 7795-7720 is a strong support region and 7770 is the immediate support, 7720 is an important level and a decisive breach of this level will bring in fresh supplies which could take it down to 7630-7560-7480 levels. On the higher side, 7850 is the immediate resistance and it must sustain decisively above this region to signal a breather in the downswing and above 8005 for some meaningful pullback.
We are still in the midst of a bull market correction, this is not the time to turn bearish and sell out, and fundamentally strong markets like India will bottom out quickly. Taking intraday short positions run the risk of getting stopped out in intraday rally, which has a high probability after the massive fall and all indicators in oversold position. Buying for intraday will be trying to catch a falling knife. So, be careful about taking positions around strategic points and do so with strict stops.
Nifty future tumbled to levels not seen since last October in a global melt down. On the lower side, 7795-7720 is a strong support region and 7770 is the immediate support, 7720 is an important level and a decisive breach of this level will bring in fresh supplies which could take it down to 7630-7560-7480 levels. On the higher side, 7850 is the immediate resistance and it must sustain decisively above this region to signal a breather in the downswing and above 8005 for some meaningful pullback.
We are still in the midst of a bull market correction, this is not the time to turn bearish and sell out, and fundamentally strong markets like India will bottom out quickly. Taking intraday short positions run the risk of getting stopped out in intraday rally, which has a high probability after the massive fall and all indicators in oversold position. Buying for intraday will be trying to catch a falling knife. So, be careful about taking positions around strategic points and do so with strict stops.
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RESISTANCE: 7870, 7920, 7970
SUPPORT: 7820, 7770, 7720
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