The market
treaded steady on Wednesday with the Sensex higher by 104 points at 27563 and the
Nifty gaining 38 points at 8377. Markets snapped a
four-day losing streak to end higher on Wednesday led by gains in IT shares
while upside gains remained capped on caution ahead of the expiry of July
derivative contracts tomorrow and outcome of the two-day US Fed meet which ends
later today. The 30-share sensex ended up 104 points at 27563 and the 50-share Nifty ended
up 38 points at 8375. The market benchmark Sensex on Wednesday recovered
from over one-month lows by rising 104 points to 27563 as investors preferred
to create positions in IT, capital goods and auto stocks ahead of F&O
expiry on Thursday. For most part of the day, the Sensex and Nifty
traded in a range bound fashion. The Sensex touched high of 27470 and low of 27609
and the Nifty moved in a range of 43 points. Analysts said that the markets
traded in a tight range as stock specific trading was seen ahead of derivative
expiry for the month of July which is due tomorrow.
The rebound
in the Chinese stock market boosted sentiment. Meanwhile, the language of the
US Fed meet which ends later today is vital which would signal its stance on
interest rates. Further, the Nifty July series is likely to expire around 8400
levels.
We tend to
think that unless 8321 through 8279 support area gets broken, further downside
would be capped and a pullback rally could well happen. However, unless you see
a recovery taking out the Nifty levels between 8407 and 8413, no pullback would
have the ability to post a short term reversal. Only when this range is
decisive cleared, we are likely to see the bulls getting some initiative back.
More about intraday tips on Google +
RESISTANCE: 8400, 8450, 8500
SUPPORT:
8350, 8300, 8250
No comments:
Post a Comment