5 November 2015


Markets opened on a negative note as participants adopt a sense of caution ahead of the outcome of the Bihar exit polls, which are due later today. The Nifty fell below the psychological 8000 mark and hit its lowest level in five weeks, closing the day with heavy losses of more than 1%. Foreign Institutional investors have been sellers in four out of the previous seven sessions, causing a further flight of bulls.  Indian stock markets fell for the eighth trading session in nine during which the Nifty has seen a 300-point correction. The selloff in markets is being linked to Bihar, where voting is on for the last phase of assembly elections. Sensex ended 248 points down at 26304.
 Nifty closed 84 points down at 7955.  Investors seem to be nervous ahead of exit polls that will be announced today evening after the end of last phase of Bihar elections. Elections results will be announced on November 8. There is a view that markets may not fall much if BJP loses as global markets are holding up...my view is a loss would take down Nifty to 7800, Nifty can easily shed 5-6 per cent or 500 points if the BJP fails to win Bihar. For 9 November ‘nifty support resistance are as follow. Trade with these support & resistance levels.

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