Markets
plunged sharply lower and lost over one and a half percent on Monday 6 December
2021 , in continuation to Friday’s fall. After the flat start, weak global cues
and updates on the new COVID variant started weighing on the sentiment as the
day progressed. Consequently, the Nifty ended near day’s low to close at 16912
levels. The sectoral indices traded in tandem and mostly ended in the red
wherein IT, auto, FMCG and pharma were among the top losers. The rise in
COVID cases has again started haunting the global markets and the situation may
deteriorate further in near future. Besides, the upcoming MPC’s policy review
outcome and macroeconomic data (IIP and CPI inflation) would keep the
volatility high. Keeping in mind the scenario, we reiterate a cautious stance
and suggest continuing with a hedged approach. Nifty is continuing its
corrections after a minor pullback where it has again slipped below its
100-DMA. The selling can be attributed to rising cases of omicron variant in
India along with other countries whereas FIIs are also continuing to hold their
hand on the sell button. There was a sharp selling on Tech stocks in the USA in
Friday's trading session and the same was replicated in our market where the
Nifty IT index ended with a cut of 2.7%, however there was broad-based selling
because there was no sectorial index that ended on a positive note. The market
may continue to remain volatile amid news flow related to the omicron variant.
Technically, 16850-16750 is a critical support zone for the Nifty where we can
expect a bounce back while below this zone, 16500 will be the next important
support level. On the upside, 17000 will act as an immediate intraday
resistance for tomorrow while 100-DMA of 17175 will be the next hurdle; above
100-DMA, we can expect a short covering move towards the 17250-17350 zone. Bank
Nifty still manages to close above its 200-DMA that is currently placed at
35725 level. If it starts to trade below this level then we can expect further
weakness towards the 35000 level otherwise it may witness a bounceback. On the
upside, 36400 will be immediate and intraday resistance while 36600/36800 will
be the next resistance levels.
More about intraday tips Whatsapp On
9039542248
Resistance: 17250, 17350, 17450
Support: 16950, 16850, 16750
No comments:
Post a Comment