The world and all its markets came crashing down and the
Indian indices too witnessed profit-booking for the second consecutive session
of trade on Friday, which dragged Sensex and Nifty below crucial 27400 and 8300
levels respectively. Broader indices too suffered similar losses.The Sensex nosedived by over 400 points in early trade on
Friday following selling by foreign funds and retail investors after a global
rout in stock markets over growth concerns. Sensex fell 242 points to settle at
27366 and Nifty declined 73 points to close at 8300 tracking selloff in global
stock markets and weakness in rupee against the US dollar. Intra-day
recovery in select banking stocks and index heavyweights ITC and Reliance
Industries helped benchmark equity indices trim losses but failed to bring them
back into the green.The Nifty tumbled to a low of 8225 in opening
trades. The index, thereafter, recovered and ended just shy off 8300-level,
down 73 points from the previous close.
While a 700-point fall in the Sensex in one week may make a
lot of counters tempting, it would be advisable to remain cautious. We expect
Friday’s pullback from day’s low to continue; but Nifty needs to sustain above 8250
for at least two weeks to confirm exhaustion of the selling pressure. Here was
modest pull back in the end of session and it closed the day deep in the red.
8345 is the immediate support and a decisive breach of this region will spell
more trouble for the bulls as it will bring in more supplies. A test of 8310
where the 200 exponential moving average is posited seems likely and if this
region holds out, some relief rally may be expected. A decisive breach of this
region will be significant as this region has given support since July, it is a
long term moving average as well as an important retracement level and a
decisive breach of it could lead to fresh panic. On the higher side, 8350-8400
is the immediate resistance and it must sustain decisively above this region to
signal halt in the downswing. 8436, 8453, 8470, 8485, 8500 all are supply
points which needs to be absorbed for upswing.
More about intraday tips on Google +
RESISTANCE: 8320, 8370, 8420
SUPPORT:
8270, 8220, 8170
No comments:
Post a Comment