Unchanged repo rate totally vanished the presence of bulls in the market. Bears may pull down nifty till 10,000 in the coming week.
WEEKLY RESISTANCE FOR NIFTY:10500,10700,10900
PIVOT POINT: 10200
WEEKLY SUPPORT FOR NIFTY : 10000,9800,9600
WEEKLY CHART FOR NIFTY
DAILY RESISTANCE FOR NIFTY: 10350,10450,10550
PIVOT POINT:10200
DAILY SUPPORT FOR NIFTY : 10100,10000,9900
DAILY CHART FOR NIFTY
Domestic equity market witnessed a sudden selling
pressure after the Reserve Bank of India kept rate unchanged at 6.50 %. The
index settled the day 792 points, lower at 34377. Its counterpart Nifty ended
at 10316, down 282 points. On Friday Monetary Policy Committee (MPC)
today decided to keep the policy rate unchanged. This was a positive surprise
for the markets with the consensus expectation being a hike of 25 bps. RBI policy announcement of keeping rates
unchanged is a surprise; this may lead to a negative impact especially the
currency market.
Trading
for the week began slightly lower as indicated by the SGX Nifty. Subsequently,
in the initial hours, we did see some attempts to recover from early morning
lows. However, a strong bout of selling dragged the index significantly lower
and within no time, index corrected towards 10800. Things looked extremely
bleak at one point; but fortunately, our markets attracted enormous buying
interest at lower levels and throughout the second half, there was broad-based
rally seen to reclaim the 11000 mark. On Monday nifty future closed at 11061.
On Tuesday market was closed on accounts of Gandhi Jayanti. There is no respite for our markets as
Monday’s recovery did not last long. On Wednesday, market opened slightly lower
and then traded in a range throughout the first half. There were a couple of
attempts made to bounce back from lower levels but all eventually got sold
into. In fact, the selling aggravated towards the fag end of the day to
conclude the day with a massive cut of 1.5% from the previous close. Wednesday nifty
future closed at 10893. On Thursday gap down opening was very much in-line with
what SGX Nifty was suggesting early in the morning. However, things worsened as
the day progressed and in the course of action, the Nifty corrected more than
300 points on an intraday basis. There were couple of attempts made to see some
respite but all got sold into as the selling pressure was quite fierce at
higher levels. In terms of index, Thursday was a terrible day for our
benchmarks as it was the biggest single day loss (on closing basis) in the
recent past, nifty future closed the day at 10631.
NIFTY:
A STRONG SUPPORT WILL BE @ 10100; STRONG RESISTANCE LEVEL SEEN @10500