MARKET VIEW:
Selling pressure continued on indices for fourth consecutive session. Inflationary pressure as well as possibility of monetary tightening continues to spoil investor''s sentiments. CRUDE is another factor which should not be ignored till it trades above $131/barrel. Volume still continues to remain on lower side showing low confidence. Amidst this there are few positive signs BULLS can rely upon. One, NIFTY after a long time has moved into premium due to last half an hour of short covering & two selling momentum has started slowing down (India VIX has lost almost 37.51% yesterday, although still in uncomfortable range). In such scenario we may see fresh emergence of BULLS only because of "sell-off" EXHAUTION and can probably fueled further by positive global cues in short term. Even on weekly chart indices are likely to take good support around mentioned "Retracement of 3775 levels" (refer weekly technical chart). As for the day, we expect market to have dull session as traders would await inflation data before taking any position. However chances of short position getting covered below 3800 levels are highly probable (NIFTY 3700 PUT have become most active). Level of 3800 continues to provide good support on daily chart; however in case of sell off we may see NIFTY slipping to 3750~3760 levels in intraday. On higher side profit booking may be seen around 3890~3900 levels. All in all, fresh shorting for time being must be avoided while any un-hedged open short position must be properly monitored with required stop loss.
SECTOR INDICES:
BSE POWER (2209.88)
For the day we are covering BSE POWER index. Yesterday this sector had closed lower by 14 points or -0.65% at 2209.88 levels. This index continues to have good support around 2000 levels and now sharp move towards 2500 is highly probable. SUZLON is showing early signs of stabilization around Rs.200/- levels. However price-volume development in next few days should be closely watched before taking position.
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