18 January 2016

NIFTY OUTLOOK & FREE NIFTY TIPS FOR TUESDAY 19 JAN 2016

 "SELL NIFTY BELOW 7350 TGT 7330,7305 SL 7375"
Bears tighten grip on markets. Domestic stock markets have got off to a horrid start in 2016, with the Sensex on Monday closing below 24200 for the first time since may 16, 2014. The Sensex is down nearly 6.5 % in a fortnight of trading, more than its 6 % fall during 2015.
There seem to be no signs of a respite with the selling pressure. After opening the day on a negative note, benchmark indices extended their fall to close near the day’s low with losses of over 1%. The Sensex and Nifty fell on Monday on account of selling in front line blue chip counters coupled with concerns about the global economy which are mounting after crude fell to its lowest since 2003. Meanwhile, data showed the country’s exports shrunk for a thirteenth straight month.
The Sensex fell 266 points lower to end below its crucial psychological level of 24500 on Monday, while Nifty closed below 7400 for first time since June 02, 2014.  Sensex closed 266 points down at 24188, while Nifty settled 86 points down at 7351.
A good amount of capitulation has taken place today; this sort of capitulation would ultimately make a bottom in the market. The market has ended at nearly 20-month closing low. But a consensus seems to be building that the current selloff has exceeded fundamentals, and there could be a bottom in place soon. Nifty surrendered all the gains of the previous day and more as it closed the day in the negative. A breach of the support level 7330 will lead to further sell off and it may then slide to levels below 7300. The level 7400, 7450 are important resistances for now and must be decisively taken out for any semblance of stability.
More about intraday tips on Google +
Resistance: 7400, 7450, 7500
Support: 7300, 7250, 7200

.

No comments:

Post a Comment