The Nifty in closing hours is struggling to touch 8600
levels on the higher side, whereas Sensex showing the same trend and finding it
difficult to reach 27,800 levels. There were signs of anxiety in the
market as the Sensex on Tuesday slumped 194 points ahead of the budget—to be
presented on Wednesday—to a one-week low of 27656 and the Nifty slipped below 8600
after the Economic Survey projected a lower growth of 6.5% for 2016-17. The
Sensex closed down 193 points, at 27655, its lowest closing since 24 January
when the figure was 27375. It had lost 33 points in the previous session. The Nifty,
which hit a low of 8552 intra-day, managed to cut down losses and ended lower
71 points at 8561.
The 8500-8555 has become a support for the Nifty now.
We are expecting Nifty to touch 8750 in the extreme short term and hit 8900 in
the medium term. A correction is likely thereafter. Nifty break above 8665
then it will increase the strong bullish pattern breakout, which will take the
indices up towards 8700/8750. A strong break (close) below 8600 will
increase the downside pressure and drag it to 8600, 8550. Traders can go short
on a break below 8550 with a stop-loss at 8665 for the target of 8450.
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Supports: 8600 and 8555
Resistances: 8665 and 8755
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