"SELL NIFTY BELOW 6970 TGT 6930/6880 SL 7010"
Bulls were failure to hold the nifty level 7000 & nifty drag down
below the 7000 level to 6970. Benchmark indices Sensex and Nifty fell for the third straight day after the Rail
Budget 2016 failed to boost market sentiments on Thursday. The
headline indices tumbled as caution prevailed ahead of the general budget due
next week. The expiry of monthly derivatives
contracts also kept investors on toes. Railway Minister Suresh
Prabhu failed to enthuse market with Rail Budget 2016 as the S&P BSE Sensex extended
losses for the third straight day to end below its crucial psychological level
of 23000, while broader Nifty settled below its key 7000-mark. The Sensex ended 113
points lower at 22976 and Nifty closed at 6971, down 48 points.
This year we haven't seen any pre-budget rally so expectations are running really low and because of the external environment, market is still trading very muted, Tomorrow if the bulls manage to hold the Nifty above 6950 zone then they would try to push it up to a sustainable level of 7000; however, the intraday volatility that we saw on today indicated the nascent upswing has already run into rough weather. Thus, taking out the zone between 7030 and 7065 would be very crucial if it were to turn into a sustainable uptrend. In case, the index falls below 6950 on heavy selling it might retest the strong support zone from 6940 and 6920.
This year we haven't seen any pre-budget rally so expectations are running really low and because of the external environment, market is still trading very muted, Tomorrow if the bulls manage to hold the Nifty above 6950 zone then they would try to push it up to a sustainable level of 7000; however, the intraday volatility that we saw on today indicated the nascent upswing has already run into rough weather. Thus, taking out the zone between 7030 and 7065 would be very crucial if it were to turn into a sustainable uptrend. In case, the index falls below 6950 on heavy selling it might retest the strong support zone from 6940 and 6920.
STRATEGY: GO SHORT WITH A STOP-LOSS AT 7040
SUPPORTS: 6940, 6900
RESISTANCES: 7010, 7040
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