The market rebounded after a fall in previous two consecutive sessions,
closing the November F&O expiry above 7850 level on hopes of passage of
Goods & Services Tax (GST) Bill in Winter Session of Parliament. The
domestic equity market traded with smart gains on Thursday bucking the muted
trend seen in other Asian and European markets. Ahead of the expiry of November
F&O series, which expired at the end of the trading session, investors
initiated fresh positions on the benchmark indices. Equity benchmarks closed
near to their psychological levels (7900 on the Nifty and 26000 on the Sensex).
The Sensex was up 182 points or 0.71 percent at 25958 and the Nifty rose 52 points
or 0.67 percent to 7883.
Nifty Future continued to move within the range as it took
support around the 7900 level but was resisted in its upswing around 7890.. It
is also the day for settlement of the November derivatives and since the
previous day was a holiday, there is likely to be high volatility in the
markets today. A breakout from this 7880-7800 range will be important since the
direction of breakout is likely to determine the trend as there could be
significant movement in the direction of breakout. The 7880-7900 remains the
critical resistance and the bulls must absorb the supply in this region and
move decisively above this zone for any show of strength. On the lower side,
7820 level is the immediate support. 7800-7775 is an important support zone and
weakness will be signaled if breached. 7725 is a key support and if taken out
may bring in panic supplies and may lead to 7705, 7665 levels.
Resistance: 7900, 7940,7980
Support: 7860, 7820, 7780
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