Benchmark indices pared opening losses in midday trade but ended in negative territory amid cloudy global clues. The benchmark indices ended the September 7 session lower after reversing some losses in the afternoon session. Sensex fell 168 points to 59028 and the Nifty lost 31 points to 17624. Benchmark indices followed the global trend, but mid & small caps rallied with strong outperformance. The latest economic data suggests that the US Federal Reserve will continue to raise interest rates. According to ISM's (Institute of Supply Management) US Non-Manufacturing PMI, the services sector expanded more than expected last month, putting pressure on global markets. Nifty has seen a short-term consolidation that swings both ways. On September 7, it opened a gap to the downside, but there were no follow-up sales. The index attracted buy support near the psychological level of 17550 as well as near the swing low of 17500. Structurally, the consolidation may continue and any move towards 17675 is likely to trigger another round of selling. Furthermore, selling pressure may intensify once the 17550 level is broken on a closing basis. The Bank Nifty Index is stuck in a broad 1500 point range where stiff resistance is seen at 40000 and support is seen at 39500. The index will see a trend move on either side of a break. Immediate support stands at 39,200 and if it breaks we will see further decline towards the 38900 -38700 zone. The bias remains on the buy side as long as the mentioned support level holds.
Resistance: 17675, 17750, 17825
Support: 17575, 17500, 17425
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