The National Stock Exchange Nifty fell
below its 200-day moving average for the first time in nearly 15 months, led by
declines in blue chips on continued worries about retrospective taxes and
lower-than-expected January-March earnings so far. The Nifty declined as much
as 1.01 per cent to break its 200-day moving average of 8254 for the first time
since February 6, 2014. The benchmark Sensex fell as much as 0.8 per cent. CNX
Nifty loses 1.10%, or 91 points, to end at 8213.
This nifty index, , looks quite
vulnerable; if it will fall below 8200 then we could see a big fall could be on
the way, which would lead the Nifty to test 8150 through 8100-level major
support area. For tomorrow, the level of 8150 is a very critical support to
watch out for; if the bears are able to take it out more depth charge likely,
and the above-mentioned major support could well be under severe test. In any
case, this level of 8200 would continue to be the last line of outer defense of
the bulls before its inner citadel of 8100 comes under fire. Any decisive
breach below the level of 8000 would mean the medium term uptrend for the nifty
coming under threat of a possible termination—however, unpalatable it may sound
to the perma-bulls!