Bulls got nervous at higher levels as nifty future ended Wednesday
session at 10849 with minor gains of 10 points. Nifty formed a new swing high
at 10873 level, but market breadth for the day was slightly negative. Sensex
and Nifty rose for the third straight day just ahead of the US Fed policy
outcome today. Expectation are like that a rate hike this time around is
almost a done deal. The markets had risen earlier in the day due to a solid
monthly industrial growth data released on Tuesday, which had boosted market
sentiment. The country’s industrial output rose by 4.9 per cent in April, up
from the 4.4 per cent growth seen in March due to a turnaround in capital goods
production as well as an uptick in overall manufacturing growth. The Sensex
climbed 47 points, , to finish at 35739.
The Nifty future ended the day
at 10849, up by 10 points. Towards the end of the day, the index rolled down and closed below the
band and the trendline. On the way down, Nifty broke a rising trendline on the
hourly chart. The chart revealed that a distribution is under way since the
past couple of sessions. The hourly momentum indicator confirmed the same, as
it showed negative divergence. The bearish view holds true as long as the index
trades below 10900. The
10925 and 10975 levels may act as immediate resistance levels for Nifty, while
supports may come in at 10800 and 10725 levels.
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Resistance: 10900, 10925, 10950
Support: 10800,
10775, 10750
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