Today’s trade was volatile and choppy amidst a movement within a tight range till midsession. In latter half, indices witnessed a sudden selling pressure and descended significantly. In morning market witnessed a wide base selling led by Metal stocks. Higher volatility was witnessed as traders roll over positions in F&O segment from the near-month December 20 11 series to January 2012 series. A swift recovery in the Auto, Healthcare and Metal stocks supported Nifty to come off from the day’s low. After the announcement of inline inflation figure for the week ended 17th December, Auto, Banking and related stocks witnessed a good revival. Food article inflation for week ended December 17has come in 0.42% vs 1.81%, WoW. Primary articles inflation announced at 2.7% vs 3.78%. During its downward stint, Nifty and Sensex breached the sanctity of vita 4700 and 15800 levels. On the last F&O expiry of 2011, the market witnessed thin volumes, but noteworthy volatility. Sensex closed at 15,543.93, down 183.92 points and Nifty closed at 4,646.25, down 59.55 points.
• Level wise, closing above the threshold 4650 levels may extend support to the bears in the forthcoming sessions.
• Broader market witnessed weak sentiments, segments, like large caps, small cap and midcap were under bear’s clout. Owing to this, bulls lost the control to the bears with significant margin.
• Due to severe selling Nifty lost significantly and lost its coveted 9 day’s SMA placed at 4687 besides closing below its vital 14, 50 & 100 day’s SMA placed at 4708,4950 & 4985.
• Though, VIX, the barometer of uncertainty, corrected sharply and closed at 27+, yet it indicates a more than average volatility in market in the forthcoming sessions.
• RSI (14) for the session was at 40.13 levels and MACD closed above the signal line
NIFTY LEVEL
CMP NIFTY FUTURE - 4673
R1-4720
R2-4765
S1-4615
S2-4565
