The see-saw battle
between the bears and the bulls continued on Dalal Street with the former
dominating Wednesday’s session amid a rise in coronavirus cases in India.
Worries surrounding a sharp drop in GDP growth rate also hit investor sentiment
on Dalal Street. India has reported a sharp rise in new coronavirus
cases in the last couple of days, indicating a community transmission. The
country has reported nearly 1,400 confirmed cases of Covid-19 including 35
deaths and 123 discharged patients. The Sensex tanked 1203 points to
28265 & Nifty dropped 344 points to 8254.
The Nifty closed the day below 8300 and formed a bearish candle on daily chart, as the closing was lower than the opening value. Considering the consistent weakness after the recent rally, we advise you to avoid long positions. The Nifty was decisively trading below its 50-day moving average and if it slips into some sort of multi-days downtrend, then corrective swing would get extended into the 8000–7800 zone. For the time being, strength in the index shall not be expected unless it closes above 8500 levels. Traders should avoid long positions and look for some signs of stability around 8700 whereas existing shorts should be squared off if the Nifty fails to close below 8000 in the next trading session.
The Nifty closed the day below 8300 and formed a bearish candle on daily chart, as the closing was lower than the opening value. Considering the consistent weakness after the recent rally, we advise you to avoid long positions. The Nifty was decisively trading below its 50-day moving average and if it slips into some sort of multi-days downtrend, then corrective swing would get extended into the 8000–7800 zone. For the time being, strength in the index shall not be expected unless it closes above 8500 levels. Traders should avoid long positions and look for some signs of stability around 8700 whereas existing shorts should be squared off if the Nifty fails to close below 8000 in the next trading session.
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Resistance: 8500, 9000
Support: 8000, 7500
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