The Indian market
closed down on Tuesday as heavy selling pressure built up in automotive and
telecom stocks while investors awaited a government fiscal stimulus package to
reverse the slowdown in the overall economy. The Sensex & nifty plunged on
Tuesday to finish in red . The sensex crashed more than 600 points ahead
of key retail or consumer price-based inflation data. Sensex nosedived 624
points to close at 36958; while the Nifty moved
184 to settle at 10926.
Being the shortened week, volatility may continue to hurt while the overall trend is still bearish in the short-term. Some more choppiness could be witnessed in the upcoming session. The recent swing low of 10901 levels could help bears to rule. Now 10950 levels has become an impotent level for nifty. Only above 11100 levels could help bulls to comeback in the ground. Traders should trade with proper strategy in such scenario. It looks prudent for traders to avoid short-term bets and focus on any breach of larger trend, which may chalk out the future course of action for the indices. The 10850 level still looks like a sacrosanct support, a breach of which shall take the Nifty future below the 10800 level. A decisive close above the 11100 level should usher in a sustainable uptrend.
Being the shortened week, volatility may continue to hurt while the overall trend is still bearish in the short-term. Some more choppiness could be witnessed in the upcoming session. The recent swing low of 10901 levels could help bears to rule. Now 10950 levels has become an impotent level for nifty. Only above 11100 levels could help bulls to comeback in the ground. Traders should trade with proper strategy in such scenario. It looks prudent for traders to avoid short-term bets and focus on any breach of larger trend, which may chalk out the future course of action for the indices. The 10850 level still looks like a sacrosanct support, a breach of which shall take the Nifty future below the 10800 level. A decisive close above the 11100 level should usher in a sustainable uptrend.
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Resistance: 10950, 11100
Support: 11850, 11800
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