After showing some signs of recovery in the previous trading
session, the market was back under pressure as the Nifty closed near 14-month
low. Traders seem to be using every rise to lighten their positions.
Participants also preferred to remain cautious ahead of the Fed meet next week. The Sensex ended with a loss of 208 points at 25044.
After opening lower at 25282, the Sensex touched an intra-day high of 25316 and
low of 24930. The NSE Nifty ended with a loss of 73 points at 7610. It
opened at 7699 hit a high of 7703 and low of 7575.
A data heavy week will get underway next week with investors
reacting to IIP data for the month of October on Monday. Moreover,
export-Import data for November, CPI and WPI for November will also be
announced next week. The focus will shift towards the key US FOMC policy
meeting next week, wherein Fed Forward rate curves suggest 83% probability of
25 basis points move on the rates. Although a hike In December is a done deal,
the language of the policy will be crucial in determining the short term trend.
The 7600 level was reclaimed on closing basis. 7550-7505 is
an important support zone and a decisive breach of this level will lead to a
retest of the earlier supports. If, however, the 7500 region is broken, the
downswing will gain fresh momentum. The 7750-7800 region is now a strong
resistance zone and must be crossed decisively for signalling a halt in the
selling and nifty must close above 7750 to signal strength. Incidentally the
last session was also an inside day i.e. its range was encompassed within the
range of the previous day and a breakout in either direction will be
significant since that is likely to set the next trend.
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Resistance: 7700, 7750, 7800
Support: 7600, 7550, 7500
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