After long run bulls took breathe on Wednesday market slumped on Wednesday, reversing Tuesday's record rally, following broad-based selling to lock in profits. All sectoral indices, barring the Nifty PSU Bank index, were deep in the red. India VIX, the fear gauge, jumped 10%. Reversing gains made on Tuesday, Indian indices ended deep in the red today and in the process wiped out nearly 2 trillion worth of market capitalisation of BSE-listed firms. The Sensex ended nearly 1000 points off the day's high and 1.6% lower from previous close at 43828 while the Nifty lost 197 points to settle at 12858. Earlier in the session, Sensex had touched a record high of 44825 while Nifty had scaled13145 as investors cheered positive vaccine trial data and strong FII inflows.
The upbeat global market combined with the news of successful vaccine trails is helping the benchmark inch higher with every passing day. Given the sharp up move recently, markets may see some consolidation; however, the bias would remain on the positive side. 12800 is going to be key support level for the market for next few trading session. Any break below this level, we may expect a short term correction till 12600. On the upside as there is significant divergence in most of the oscilator like RSI, MACD we expect market participant will use any rally to book profit rather than building fresh position as any significant rally from here is unlikely before we see some correction. 12950-12980 is likely to act as supply zone.More about intraday tips Whatsapp
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Resistance: 12950, 12995,
13050
Support: 12850,
12750, 12650
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