The domestic markets
continued its roller coaster ride, up one day and down another for the fifth straight day. The bears took a firm control as the markets drifted lower tracking feeble global cues. Tepid manufacturing data from the China drags down the Indian markets as worries over the global economic recovery worsens.The Sensex began the session 22 points lower at 17679 following negative global cues. The index soon widened its losses in the morning session. The index took a beating all through the day. In the afternoon session, the Sensex crashed further to touch the day's low of 17455 after the European markets opened weak and continuous selling witnessed in the metal and realty stocks. However in late afternoon trades, the Sensex trimmed some of its losses as some buying was seen in defensive sectors like consumer durables and fast moving consumer goods.
At the closing bell, the Sensex shut 192 points lower at 17509. and the Nifty signed off 61 points down at 5251.
The market breadth was negative as declining shares outnumbered the advancing ones. Of the 2,979 stocks traded on the BSE, 1,449 stocks declined, whereas 1,339 stocks advanced and 131 stocks closed unchanged.
However, If the FII data were to be any precursor, with the FIIs having pumped in about 7000 odd crores in the last week even though the markets were falling, seems to suggest that there is a big rally in store for our markets if not otherwise.
F
OR TODAY:: The Nifty held its support at 20 daily moving average (DMA), which is very crucial in the short term. On the upside, 5320 is a resistance, which is 61.8% retracement of the fall from 5367 to 5210. The Nifty is now remains in a range of 5367-5210 and the break on either side will decide the further course as it has made an inside bar candle stick pattern. In fact, The daily momentum continues to be in sell mode, indicating weakness in the .5120 and 5170 may act as a strong support level for Nifty while 5280 and 5310 are strong resistance levels. The counter may show recovery today once Nifty trades and remains above 5274 whereby it may move up to 5289/5308. However, Nifty is expected to trade in the range 5170-5270 today.
Traders are suggested to be cautious of short selling if Nifty successfully holds 5170 level (positional).
SELL BANKNIFTY FUT BELOW 9310 WITH STRICT STOPLOSS OF 9350 FOR TARGET OF 9270 AND 9210
SELL ICICIBANK FUT BELOW 835 WITH STRICT STOPLOSS OF 843 FOR A TARGET OF 827 AND 817
SELL JSWSTEEL FUT BELOW 1035 WITH STRICT STOPLOSS OF 1043 FOR A TARGET OF 1027 AND 1020
SELL TATASTEEL FUT BELOW 464 WITH STRICT STOPLOSS OF 470 FOR A TARGET OF 459 AND 452
