Nifty exhibited a very weak show and witnessed its second continuous session of stop losses. Nifty not only closed with deep cuts, but also breached several of its vital supports. After today’s bearish candle, buying momentum has faded and Nifty may be in bearish phase till it crosses vital resistances of 5050 and 5000. Technically, Nifty made higher lows and lower highs in last two sessions and again rejoined its bearish journey. Because of a weak show, Nifty tumbled down below the vital levels of 9 & 14 day’s SMA placed at 5036 & 4975 besides closing below the vital support levels of 50 &100 day’s SMA placed at 5304 & 5416 levels; this may be the new resistances in forthcoming sessions. Selling rush in large caps, small cap & mid cap supported Bears to snatch control from bulls, because of which, Indices closed with negative market breadth. In today’s session, VIX, the barometer of uncertainty, closed at a higher level of 32.75, indicating more than average volatility in market in the forthcoming sessions. RSI (14) for the session was at 41.41 levels and MACD closed above the signal line, thus combined together they are giving the signals that; market may continue to witness some consolidation.
Nifty Resistance
R1-4983
R2- 5021
S1-4909
S2-4873
Buy SKS MICRO CASH ABOVE 272 TGT- 277 & 285 SL- 267
Short RANBAXY future BELOW 485 TGT- 478 & 473 SL – 489
