Nifty (8570.90, -63.75, -0.74%)
While a number of country’s stock markets including the US market have posted new highs last week, our market showed significant weakness during the week. It appears that more weakness could be in store even in the short term as well as for the medium term since the bullish momentum of the market has suffered substantial reduction for the first time in a year! We could well be headed for a test of the major support area between 8530 and 8470. On the other hand, even if we were to see any recovery in the day’s session, unless you see the Nifty posting a strong close above the 8650-mark such recovering would not matter much but could well be a fresh invitation to the bears to sell again.
While a number of country’s stock markets including the US market have posted new highs last week, our market showed significant weakness during the week. It appears that more weakness could be in store even in the short term as well as for the medium term since the bullish momentum of the market has suffered substantial reduction for the first time in a year! We could well be headed for a test of the major support area between 8530 and 8470. On the other hand, even if we were to see any recovery in the day’s session, unless you see the Nifty posting a strong close above the 8650-mark such recovering would not matter much but could well be a fresh invitation to the bears to sell again.
- Most critical level for the day: 8616, its immediate resistance
- Strong resistance zone: 8627 – 8669
- Major resistance: 8707 – 8727
- Strong support: 8530 – 8470
- Major support: 8448 – 8424
- Bank Nifty (18606.35, -204.80, -1.09%)An index that has more than doubled 110% in less than a year’s time (during the week ending Feb 07, 2014 it showed a low of 9944 while during the week ending Jan 30 it showed a high of 20907) is now showing a pattern on the weekly chart that suggests a deep cut here going forward before another medium term uptrend shapes up. Thus, for investors and position traders it would be worth their while to sell stocks in this sector on any rally.For the day, watch out for the level of 18588, which is going to act as the most critical level for the day. The range between 18588 and 18446 would act as the strong support zone, and the major support between 18295 and 18225. On the way up, major resistance zone begins from 19060, and so long as the 19375-level is taken out decisively all rallies, henceforth, would just be pullback attempts by the bulls to get out at higher levels. This index is going to create major problems for the Nifty as well going forward.
- Most critical level for the day: 18588, its immediate support as well.
- Strong support: 18588 – 18446
- Major support: 18295 – 18225
- Strong resistance: 18813 – 18860
- Major resistance: 19060 – 19150 - 19375
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