NIFTY COMMENTS:

We saw that the Nifty opened weak in the morning session at 5740 levels. After that, the markets continuously drifted downwards to 5650 levels. Thereafter, in the afternoon session, the markets were trading in a sideways range of 40 points between 5650-5690 levels. The markets were not even able to give a slight pullback at 5690 levels and further started drifting downwards. Later, towards the close the markets also broke the strong intra day support of 5650 convincingly and started trading at much lower levels. Hence, the Nifty closed extremely weak for the day at 5561, (-3.80%) below its previous close. The advance: decline ratio was also very slightly negatively biased at 131:1070.

MARKET VIEW:

The American Markets have closed extremely weak. The Asian Indices are trading with a negative bias. We can expect a gap down opening for our markets in the morning session. The next support on the downside at 5470 will also be under threat today. But, a slight pull back can be expected in the afternoon session, which might not sustain for a long time. Hence, we expect another weak closing for our markets today. We can see that the markets have closed at 5561 levels yesterday. We can also notice on the daily charts that the markets have now broken its 20 Day Moving Average at 5715 convincingly. The markets have now fallen considerably seen the past few trading sessions and will now look for support at the 50 Day Moving Average. Hence, we expect our markets to move lower to 5400 levels in the short term.

SECTOR INDICES:

BSE METAL (16254)

The BSE Metal index closed at 16254 levels yesterday, which is (-6.11%) below its previous close. We can also notice that this index has got a strong support at 16,200 levels and is currently trading very close to these levels. Hence, we expect these levels to be broken and the index could move slightly lower to 15800 levels in the short term. We are seeing further weakness in Hindustan Zinc and Tata Steel in this sector.

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