Bulls troll bears…!!! The indices shrugged off weak global
cues and weakness ahead of the crucial US Federal reserve meet next week. NIfty50
above 7650. The BSE Sensex and NSE Nifty snapped a six-day losing
streak on Thursday as investors bought into beaten down shares such as Reliance
Industries even as sentiment remained cautious ahead of the US Federal
Reserve meeting next week. Sensex closed 216 points up at 25252, while Nifty
closed 70 points up at 7683. Domestic markets bucked the muted trend seen in
Asian markets as investors bought into beaten down shares such as Reliance
Industries even as sentiment remained cautious ahead of the US Federal
Reserve's December policy meet.
The bounce-back can extend to 7700-7720. Today's low has
made some kind of a double bottom in the intraday sense and probably, for the
next day or two, there is a very clear case for a bounce back, where one can go
long on individual stocks, and the Nifty50 can give you a 50-70 point
bounce-back.
The 7800-7790 region is now a strong resistance zone and
must be crossed decisively for signalling a halt in the selling and nifty
futures must close above 7900 to signal strength. If, however, the 7600 region
is also broken, the downswing will gain fresh momentum as bears tight their
already strong grip.
Resistance: 7750, 7800, 7850
Support: 7650, 7600, 7550
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