Market movement remained lackluster for the second consecutive
session Wednesday and closed lower amid mixed global cues as investors
maintained cautious stance ahead of the minutes of the US Federal Reserve's
latest policy meeting later today. Lack of domestic cues also caused the
listless trade. Market sentiment remained down beat after wholesale inflation
soared to a 23-month high of 3.55% in July. Traders turned cautious after US
Federal Reserve official said interest rates could rise as soon as September. The
Sensex on Wednesday settled the day 59 points lower, but above its crucial
28,000 level, while the broader Nifty closed below its key 8650 mark. The Sensex
ended with a loss of 59 points at 28005. The Sensex opened at 28062 touched
an intra-day high of 28174 and low of 27960. The Nifty closed with a loss
of 19 points at 8624. The Nifty opened at 8640 hitting a high of 8667 and
low of 8604.
Bias is still positive but since we're closer to the F&O expiry week,
traders should maintain cautious approach especially in index trades. For
tomorrow nifty now tests key resistance at 8650. A strong rally beyond this
level and the next key resistance at 8700 will strengthen the bullish momentum.
In that case, the contract can rally to the 8730 and 8750 band. But the
inability to move beyond 8620 will keep the index under selling pressure. A
decisive fall below 8600 can pull the contract down to 8580 and then to 8550
levels. The next key supports are at 8530 and 8500 levels.
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Supports: 8,600 and 8,580
Resistances: 8,620 and 8,650
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