3rd day in succession. A gap down open coupled with fresh selling
pushed the Nifty to new yearly low of 4369 points. ONGC, IT and
FMCG stocks which were holding for the past couple days were led
the decline . Oscillation in Reliance kept the market players on
tender hooks but the Bulls heaved a sigh of relief as short covering
in the heavy weight stocks recovered 80 points from the low. In fact
the discount which had gone to more than 30 points came almost at
par at the closing bell. The A/D ratio was negative at 1:3 with no
significant change in the volumes.
Yesterday, both the weekly s2 (4395) in the Nifty and the March
BSE low (14677) were marginally breached but the Indices pulled
above it at close. Trendline of the “downward sloping channel” is
currently at 4698 points. A decisive close above 4756 points would
threaten the Bears, till then the trend is down. Support in declines
is pegged around 4326-4271 points region. If the Bulls fail to hit a
low below 4319 points we could see some more short covering in the
coming days.
Intraday, 4447 points is the pivot in the Nifty. The Bulls need a
high above 4498 points for the pullback to sustain. Crucial support
is pegged at 4390 points which can be treated as a pivot for the
remaining week. Though the Indices are closing negative, intraday
short covering is emerging at lower levels indicating the odds are
evenly poised from hereon. Keep stop loss and trade.
NIFTY Intra Week
Volatility 224 pts
S2 4395.00
S3 4271.00
R1 4613.00
R2 4756.00
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