As already mentioned yesterday "Nifty achieved its first target of 2850 & now it is placed at crucial breakout level for target of 2910+ which may be achieved. On the other hand, Nifty close below 2800 can once again threaten the EST uptrend resulting target of 2700 & 2500 which may be achieved soon. " Nifty opened with a huge down gap of nearly 130 points & touch an intra day low of 2701 & remained range bound for more than 150 minutes before recovering to touch a high of 2768 but again collapsing to touch 2710 before finally closing at 2735, about 98 points below the previous close. The fall was led by strong negative cues from US & Asian markets.
As far as, EST charts are concerned, Nifty has bounced back from support of 2700-2710 & it had left a huge opening gap today which is likely to be filled in couple of days. In that process, Nifty can go above 2810 also. On the other hand, another close below 2700 may intensify further decline towards 2500 as mentioned a couple of days back.
Most of the infrastructure, telecom, banking, steel, metal, pharma & select auto stocks were among the top losers of the day where as stocks like Zee Ent., fertilizer, sugar, oil, tea & few other sectors managed to close in positive territory. As far as A/D data is concerned it was in favor of bears in the ratio of 3:1 with 890 declines & 280 advances during the day.
In nutshell, Nifty appears to be heading for 2500 & below .Many important stocks are giving bearish indications in extreme short term & Nifty close below 2700 will confirm the bearish targets. On the bullish side, Nifty can go unto 2910 where lot of profit booking is likely to emerge. The best strategy would be to book profit in stocks like HDFC Bank, BHEL, ICICI Bank, SBI & other such stocks which are trading below their crucial support levels. For intra day stock & sector specific strategy can be applied.
No comments:
Post a Comment