6 November 2015


The fall continued!!!! The Sensex on Friday lost almost 39 points to close at over one-month low of 26265 while broader Nifty held its crucial support level of 7950 to settle 115 points down at 7954. Market breadth remained negative with 18 of the 30 Sensex stocks ending the day in red. Disappointment over some results, including at Tata Steel, also weighed on sentiment, but state-run lenders rallied after State Bank of India recorded a better-than-expected 25 per cent rise in quarterly profit. Markets think it will be hard for the Modi government to win Bihar elections. That, coupled with somewhat in-line results, are weighing  Investors will stay cautious ahead of Bihar election verdict to be declared on Sunday, after exit polls on Thursday suggested a neck-to-neck competition between the NDA and the Nitish Kumar-led Mahagatbandhan.
This time, it was much bigger a correction. Nifty opened slightly weak initially but then whole day it capitulated in a narrow range. Finally tumbled to settle down near day’s low, around 7950 mark.. Now, it appears further fall we have to witness before it stages any major recovery. Technically, the range, 7990-8020, may act as a critical zone to watch out for today also a minor hurdle. Even if nifty takes out this range unless it stays over there for quite some time, no major activity on the upside may be seen. Above 8020, next resistance would be there between 8045 and 8055 area.On the other hand, initially 7955-7945 and then, the range 7920-7900 would be the two major support levels to watch for today if it were to open weak again and starts maintaining below 7990 – mark.
 Monday market is expected to take u turn position. As the nifty has closed down exact at it’s pivot level.
RESISTANCE; 8020, 8080, 8150
SUPPORT; 7940, 7880, 7850

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