MARKET VIEW:

The American Markets have closed flat. The Asian Indices are trading mixed. We can expect a flat opening for our markets in the morning session. The markets have a got a strong intra day support at 5600 levels, which if broken can take the markets further down. But, there can be some amount of volatility towards the close as the markets will try to pullback from lower levels. Hence, we expect the markets to close flat to slightly positive for the day.  We can see that the markets have closed at 5635 levels yesterday. We can also notice on the daily charts that the Nifty is continuously trading below 5680 levels, which is its 20 Day Moving Average for the past few trading sessions. We observe that the markets have a strong support at 5600 levels, which is unlikely to hold in the short term, because the markets are slowly drifting downwards with heavy volumes. Hence, we expect our markets to move down to 5580 levels in the short term.

SECTOR INDICES:

BSE HEALTH CARE (3788)

The BSE Health Care index closed at 3788 levels yesterday, which is (-1.01%), below its previous close. We can also notice that this index has got a strong support at 3650 levels, which is likely to be tested in the short term. Hence, we expect this index to move lower to 3600 levels in the short term. We recommend a sell in  Aurobindo Pharma  and Lupin  in this sector.

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