26 August 2016


Indian market closed the first day of the September F&O contracts lower as investors await the commentary from U.S. Fed on how aggressively it plans to raise rates. The Sensex lost 0.2 % to 27782; while the Nifty declined 0.2 percent to 8572. The Sensex on Friday settled the day 53 points lower below its crucial psychological level of 28000, while the Nifty ended below its key 8600. Investors are wary Yellen will hint at a near-term interest rate hike, which could divert some of the massive liquidity that has underpinned emerging markets, after hawkish comments from a slew of other Fed officials recently. The Sensex ended with a loss of 54 points at 27782. The Sensex opened at 27883 touched an intra-day high of 27936 and low of 27697.The Nifty closed with a loss of 20 points at 8573. The NSE Nifty opened at 8614 hitting a high of 8624 and low of 8547.
The near-term outlook is bearish as the contract has decisively breached key support 8550 and is hovering below them. Traders with a short-term perspective can make use of rallies to initiate fresh short positions with a stop-loss at 8650 levels. Continuation of the down move can make the contract retest the supports at 8500 and then 8450. Further fall below 8450 can find supports at 8430 and 8400 levels. On the other hand, key resistances are placed at 8650, 8675 and 8700 levels.
Supports: 8550 and 8500
Resistances: 8650 and 8700          

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