8 October 2015


"BUY VEDL FUTURE ABOVE 93.80 TGT 94.50/96.70 SL 91.40"
"SELL LT FUTURE BELOW 1536 TGT 1522/1509 SL 1549"
The Sensex and Nifty snapped six-day winning streak on Thursday on the back of profit booking and weak rupee. Sensex and Nifty gained 1419 points and 381 points in the past six trading sessions till October 7.  Today Sensex opened at 27117, touched an intra-day high of 27120 and low of 26762 respectively, and finally ended with a loss of 190 points at 26846. The Nifty opened at 8197; hit a high of 8197 and low of 8106 before signing off with a loss of 48 points at 8129. Overall market breadth for the day remained negative with 35 of the 50 Nifty stocks ending the day in red.
Just when we thought, that Nifty was all geared up to rally towards the 8300 mark, indices took a breather. After the Hanging Man candle stick pattern which is considered as the reversal sign, Nifty has further formed a bearish engulfing pattern today which indicates that additional selling pressure could be in store.Unless we see a quick recovery to at least above 8175-level, the Nifty is likely to fall further again. The indications from the Nifty are just that it is trading at 8130, down by 48 points, albeit on low volume. The whole range between 8130 and 8175 would act as a strong supply zone. Only when you see the Nifty taking out 8180 on closing price as of today you would get the indications that a recovery or at least a pullback rally is about to happen. On the downside, if the index were to fall below 8070 on high volume activity and more position building it could well go down to test 8030 through 8000 major support area.

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RESISTANCE: 8150, 8200, 8250

SUPPORT:  8100, 8050, 8000

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