YESTERDAY’S DLF CALLACHIEVED 1ST TGT
Selling pressure was witnessed across the board but rate-sensitive sectors fell the most. In the end, the Sensex and Nifty plunged 660 points and 197 points to 27188 and 8236, respectively. Equity benchmarks nosedived on Tuesday after the Reserve Bank of India (RBI) took a cautious stance on the economic recovery even as it cut the policy rates by 25 basis points.The sell-off in markets came after the market participants interpreted from the Reserve Bank of India's commentary that going ahead chances of another rate cut in the current calendar year remain bleak as the real interest rate shrunk to RBI's target level of 1.5 per cent post today's repo rate cut. The Nifty ended at 8236.45, down 196 points or 2.34 per cent. It touched a high of 8445.35 and a low of 8226.05 in trade today.The 50-share Nifty index also came under pressure and broke below its crucial psychological support level of 8250, weighed down by losses in rate sensitive stocks such as banks, autos, and realty and capital goods stocks.
Nifty index slipped more than 200 points in trade to break below its 200-DMA around 8338. Usually, 200-DMA represents strong support for the index and with the breakdown seen in markets today; there is always a possibility that markets remain weak for some more time. We have already broken the 200-day moving average today about 8330, and were trading below that level post RBI outcome. If we breach this on a closing level as well, then we can see 8200, which could be the next support,
So, investors should watch out for 8200 post 8330, and yes, we think that it would be possible for the the Nifty to head towards levels below 8200.
The market is expected to remain in downward bias for next couple of days.
More about intraday tips on Google +
Selling pressure was witnessed across the board but rate-sensitive sectors fell the most. In the end, the Sensex and Nifty plunged 660 points and 197 points to 27188 and 8236, respectively. Equity benchmarks nosedived on Tuesday after the Reserve Bank of India (RBI) took a cautious stance on the economic recovery even as it cut the policy rates by 25 basis points.The sell-off in markets came after the market participants interpreted from the Reserve Bank of India's commentary that going ahead chances of another rate cut in the current calendar year remain bleak as the real interest rate shrunk to RBI's target level of 1.5 per cent post today's repo rate cut. The Nifty ended at 8236.45, down 196 points or 2.34 per cent. It touched a high of 8445.35 and a low of 8226.05 in trade today.The 50-share Nifty index also came under pressure and broke below its crucial psychological support level of 8250, weighed down by losses in rate sensitive stocks such as banks, autos, and realty and capital goods stocks.
Nifty index slipped more than 200 points in trade to break below its 200-DMA around 8338. Usually, 200-DMA represents strong support for the index and with the breakdown seen in markets today; there is always a possibility that markets remain weak for some more time. We have already broken the 200-day moving average today about 8330, and were trading below that level post RBI outcome. If we breach this on a closing level as well, then we can see 8200, which could be the next support,
So, investors should watch out for 8200 post 8330, and yes, we think that it would be possible for the the Nifty to head towards levels below 8200.
The market is expected to remain in downward bias for next couple of days.
More about intraday tips on Google +
RESISTANCE: 8355, 8388, 8418
SUPPORT: 8322, 8292, 8262
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