13 November 2015


In line with our expectation, Nifty futures took support around the 7800 region. We have seen that in the history of Indian stock market, political event fallouts are discounted with a gap down opening and a subsequent low on the next functioning trading day and that was what happened in the last trading session too. It rebounded from the 7790 level which in itself is a strong support, and as long as this level holds on declines, we may consider that a short term low has been formed for now.
In any case, we anticipate that the range between 7812 and 7775 would not be violated at one go. Nifty futures may open in the negative on weak global cues, and after the initial volatility and probable retest of previous day’s supports, may move up on short covering subsequently. On the higher side, 7950 is the immediate resistance. The range 7990-8030 may act as a critical zone to watch out for today and an important hurdle and Nifty must take out this range decisively for signal that it is on the path to recovery which may take it up to the 8100 region once again with some resistance around 8070 and 8085.
SUPPORT : 7740, 7690, 7610
RESISTANCE : 7798, 7850, 7930

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