Nifty gave bearish breakout from the support of 2750 & declined to touch an intra day low of 2709 before bouncing back to close at 2736 still short of 20-30 points of the target which may be achieved soon. On the bullish side, Nifty can touch 2775 & 2875 in coming days.". Most of the global markets of USA & Asia were heavily down but Indian market opened on a moderately bearish note & declined further to touch an intra day low of 2677.55 & gradually recovered to close at 2733, about 2 points below the previous close while recovering all its lost ground.
As far as, short term charts are concerned, Nifty is making a slightly bullish pattern i.e., "Inverted Head & Shoulder" pattern having resistance at 2750, breakout from where will set higher bullish targets of 2825-2850. On the other hand, close below support of 2780 is capable of losing 200-300 points of Nifty in coming days. Since, some of the important stocks like Reliance, SBI, Tata Steel, ICICI Bank, HDFC Bank are giving bullish signals, the recovery targets are likely to be achieved sooner than later.As for as bar reversal in Daily charts are concerned, stocks like ICICI Bank, DLF, Unitech, L&T, Reliance Capital, Infosys, RCOM, Grasim and Maruti have given "Upward Bar Reversal" in addition to Nifty Futures while Bank of Baroda, HPCL, LITL, Voltas, IOC, GE Shipping and Indowind etc. have given "Downward Bar Reversal". Sector wise, most of the banking, sugar, steel, aviation, media, housing finance were among the top losers of the day while select stocks like GSS Amerca, APIL, Power Grid, Bharat Forge, Ranbaxy, DLF, Titan, Century etc.,were among the top gainers of the day. As far as, A/D data is concerned it was in favor of bears in the ratio of 2.5:1 with 861 declines & 337 advances during the day.
In nutshell, Nifty continues to be in sell mode as far as short term charts are concerned. Break below 2680 will set fresh bearish targets of 2300-2200 which may be achieved in coming weeks but hourly charts are making a bullish pattern having resistance at 2750, breakout from where will initiate further recovery to 2825-2850.The best strategy should to be concentrate on stocks which have given bullish indications in hourly charts for next 2-3 days.
As far as, short term charts are concerned, Nifty is making a slightly bullish pattern i.e., "Inverted Head & Shoulder" pattern having resistance at 2750, breakout from where will set higher bullish targets of 2825-2850. On the other hand, close below support of 2780 is capable of losing 200-300 points of Nifty in coming days. Since, some of the important stocks like Reliance, SBI, Tata Steel, ICICI Bank, HDFC Bank are giving bullish signals, the recovery targets are likely to be achieved sooner than later.As for as bar reversal in Daily charts are concerned, stocks like ICICI Bank, DLF, Unitech, L&T, Reliance Capital, Infosys, RCOM, Grasim and Maruti have given "Upward Bar Reversal" in addition to Nifty Futures while Bank of Baroda, HPCL, LITL, Voltas, IOC, GE Shipping and Indowind etc. have given "Downward Bar Reversal". Sector wise, most of the banking, sugar, steel, aviation, media, housing finance were among the top losers of the day while select stocks like GSS Amerca, APIL, Power Grid, Bharat Forge, Ranbaxy, DLF, Titan, Century etc.,were among the top gainers of the day. As far as, A/D data is concerned it was in favor of bears in the ratio of 2.5:1 with 861 declines & 337 advances during the day.
In nutshell, Nifty continues to be in sell mode as far as short term charts are concerned. Break below 2680 will set fresh bearish targets of 2300-2200 which may be achieved in coming weeks but hourly charts are making a bullish pattern having resistance at 2750, breakout from where will initiate further recovery to 2825-2850.The best strategy should to be concentrate on stocks which have given bullish indications in hourly charts for next 2-3 days.
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