Barring FMCG sector, sell off was seen all across the board.
Banking, CGS, IT and Realty stocks were down 5%. Meltdown was
also witnessed in Midcap segment. The Nifty opened lower and kept
on drifting down in the first session. In afternoon, it marginally
breached the recent low at 3790 points (current low 3777). Last
hour of trade was extremely volatile with over 75-80 points swings
on both the sides. Failing to breach the day’s low saw a fair amount
of short covering. RIL and Bharti bounced smartly recovering
around 100 points in the Nifty. Volumes were higher and the A/D
ratio was negative at1:3.
The Nifty came al most near the Head & Shoulder target of 3770
points. A decisive breach of it would lead to fresh downswing with
support at 3663 points. Weekly S2 is pegged at 3724 points.
Immediate resistance has shifted down to 4115-4150 points while
short term trend remains down as long as 4245 points is not
decisively crossed.
Intraday, pivot is pegged at 3885 points which needs to be sustained
for any up move. Resistance is at 3924 and up at 3795-4015 points
in an optimistic scenario. Crucial support in declines is at 3770 and
3724 points. Steroids and Injections seem to have no effect on the
ailing Bulls. If the support holds we might see a small pullback, but
failing in it their nightmare continues!!!
NIFTY Intra Week
Volatility 332 pts
S1 3811.35
S2 3724.40
R1 4202.20
R2 4445.00
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