Its gets worst for the stock market as sensex & nifty extended losing streak in Friday's trading session also. Nifty ended below
the 200-DMA however, just managed to close at the 7750 level. After opening on
flat note, nifty & sensex were stuck in a narrow trading range throughout the day.
However, the sensex fell sharply at the fag end of the day as selling
pressure accentuated. Extending losses on
Friday also, the Sensex settled the day 98 points lower in a volatile
trading day, while Nifty ended a tad below its key
7750-level. Sentiment on the Street remained cautious after comments from a key
Federal Reserve official led to increased expectations of the US Federal
Reserve hiking interest rates as early as next month in june only. The market is a bit
nervous about the possibility of a rate hike by the Fed next month in June
2016. If global markets crack, then our markets will definitely follow suit.
If we talk about Friday's market today the Sensex ended with a loss of 97 points at 25301. The Sensex opened at 25428 touched a high of 25506 and low of 25252. The Nifty futures contract started the session on a positive note, opening at 7790 levels. It has been volatile in a wide range between 7775 and 7830. The contract currently tests key short-term support at 7800. Only a decisive fall below this support level can strengthen the bearish momentum and drag the contract down to 7735 and then to 7710 in the short-term. Such a fall would be a cue for initiating short positions with a fixed stop-loss. On the upside, the contract has significant resistances at 7835 and 7855 levels. A conclusive rally above the second resistance is needed to strengthen the bullish momentum and take the contract up to 7895 and 7955 in the same period. Therefore, traders with a short-term perspective should desist from trading in the index futures contract as long as it trades in the sideways band between 7810 and 7855.
If we talk about Friday's market today the Sensex ended with a loss of 97 points at 25301. The Sensex opened at 25428 touched a high of 25506 and low of 25252. The Nifty futures contract started the session on a positive note, opening at 7790 levels. It has been volatile in a wide range between 7775 and 7830. The contract currently tests key short-term support at 7800. Only a decisive fall below this support level can strengthen the bearish momentum and drag the contract down to 7735 and then to 7710 in the short-term. Such a fall would be a cue for initiating short positions with a fixed stop-loss. On the upside, the contract has significant resistances at 7835 and 7855 levels. A conclusive rally above the second resistance is needed to strengthen the bullish momentum and take the contract up to 7895 and 7955 in the same period. Therefore, traders with a short-term perspective should desist from trading in the index futures contract as long as it trades in the sideways band between 7810 and 7855.
Strategy: Desist from trading in
the session as the contract is range-bound.
More
about on Google +
Supports: 7795 and 7775
Resistances: 7835 and 7875
good
ReplyDelete