As already mentioned yesterday "Nifty has achieved the bearish target of 2835 which we had given in last 2-3 days & now it is placed at a very crucial support of 2895-2920, breakout from where can wipe off another 200 points with EST support at 2835. On the other hand, any positive news can trigger technical recovery towards 3025 with resistance at 2935. " Nifty opened on a bearish note due to Satyam fraud, however it bounced back immediately in positive territory to touch the resistance level of 2935 which it could not cross & tumbled again on certain rumors in the market to touch an intra day low of 2810 & bounced back again to touch a high of 2910 & ended the day at 2873, about 47 points below the previous close. With support of 2810 survive, there is chance of Nifty touching 2965 to 3025 in next few sessions.
As far as, EST charts are concerned, Nifty is making a slightly bullish pattern having resistance at 2910-2925 & bullish breakout from these levels are capable of taking Nifty to 3010-3025. On the other hand, if support of 2810 is broken we may be heading for 2700 & 2500 in coming sessions. With Weekly Downward Bar reversal in more than 60% of Index based high volume stocks, possibility of Extreme Short Term Trend reversal can not be ruled out. In any case many stocks are indicating recovery from oversold zones which means possibility of touching 2965- 3010 also exists.
Sector wise, most of the reality, brokerage, media, IT, communication, pharma, financials were under selling pressure & lost heavily during the day. On the other hand, select auto, oil, PSU banks, large IT stocks had bucked the trend & closed in positive territory despite overall negative sentiment. As far as A/D data is concerned it was in favor of bears in the ratio of 4:1 with 947 declines & 260 advances during the day
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