The Bears were back with a bang wiping off all the previous day’sgains. Barring banking stocks all the Sectoral heavy weight stockstumbled in the morning session. Discount once again widened butsome short covering was seen in the Futures as it took supportaround its earlier lows (3811-3818). Reliance with the support ofbanking stocks (led by SBI) gave a pullback of around 100 points.Afternoon session was highly volatile as the battle intensified butonce again sharp selling in the last half hour pushed the Bulls onthe back foot. The A/D ratio was marginally negative and thevolumes were lower.As seen from the above graph, a newly drawn trendline in pinkshows that the Nifty is moving in a “wedge” type pattern. Themarkets have become turbulent as it is getting squeezed inside thewedge. Trendline support and resistance of it is at 3779 and 4052points respectively. Since the odds are even around 3854 points(61.8% retracement of 2307-6357), we are seeing the pullbacks. TheBears need to break 3824-3854 points range decisively for freshdown swing, otherwise the markets may consolidate at currentlevels.Intraday, the 3824-3842 points’ area is the crucial support in theNifty. Pivot is pegged at 3899 points and resistance is at 3985-4014points. Protect your positions appropriately as the markets arehighly volatile.
NIFTY Intra
WeekVolatility 308 pts
S3 3738.57
S4 3617.00
R1 4573.67
R2 4739.40
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