mercilessly. The Bears were back with a bang knocking of 140
points. The relentless selling was seen from the opening bell till the
last minute of the day. Banking, Realty and the IT stocks were the
main culprits, the Realty, CGS and other sectors bowed before the
Bear’s might. Reliance cushioned the fall to some extent. Volumes
were almost the same with A/D ratio negative at 1:2.5.
Since morning the Bulls were under pressure but panic Bull
liquidation was seen when the crucial support at 4375-4390 points
got breached. Caution had been advocated when the black trendline
on the RSI oscillator broke 2 days ago. With the support (4375)
breaching, range expansion which was long overdue tilted in the
Bears favour. Now the support in declines is at 4222-4249 points
(50% retracement of the rise from 3790-4649 and weekly s2).
Resistance at 4529 points has to be crossed to signal strength and
unless 4630 points is not sustained in closing, upside is capped.
Intraday, pivot is at 4324 points and resistance in rallies is at 4385,
4436 and points. Immediate support is at 4257 points, below that
4220-4230 points would come into play. Yesterday’s fall must have
sent shivers in the Bull’s spine. The Bears are tightening their grip;
it’s better to be with the tide or watch from the sidelines.
NIFTY Intra Week
Volatility 326 pts
S1 4389.70
S2 4249.75
R1 4642.65
R2 4722.55
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