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The market ended April 6 for the second straight day lower on weak global cues and selling in auto, bank and IT names. At the close the Sensex was down 566 points to 59610 and the Nifty down 149 points to 17807. The benchmark index found resistance around the previous low before settling on a negative note. On the daily chart, the index has been moving within a rising channel where it has fallen to the lower band of said channel. Traders rushed to further reduce their positions in banking and IT stocks, dragging key benchmark indices significantly lower. Weakness in other global markets and concerns of a hawkish US Federal Reserve likely to hike interest rates, coupled with caution ahead of the RBI policy meeting, prompted investors to avert risk.
Going forward, an immediate recovery from current levels is
expected. However, failure to sustain above the lower band of the rising
channel can trigger selling pressure in the market. On the downside, support is
visible at 17775, below which the Nifty could drift towards 17750 in the
short-term. For traders 17700 would act as an immediate hurdle and below that a
weak formation is likely to continue to 17650-17600. However, above 17850 the
index could rise to 17900-17950. The Nifty has strong support between 17700 and
17800 and therefore contra traders can take a long bet near 17700 with a strict
support stop at 17625.
Resistance: 18150, 18200, 18250
Support: 18000,
17950, 17900
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