Equity indices, Sensex and Nifty50, snapped a two-day winning streak on
Thursday after the rupee fell to a record low, dampening market sentiment. The Sensex lost 240.84 points or 0.92% at the day's
low of 25,810.97 in afternoon trade, its lowest level since 22 November 2016.
The barometer index shed 2.67 points or 0.01% at the day's high of 26,049 in
opening trade. The Nifty lost 80 points or 1% at the day's low of 7,952. in
late trade, its lowest level since 22 November 2016.
Technically, The Nifty50 remained in the grip of the bears for most part of the
trading session on Thursday as the November series futures and options
contracts expired. The bulls tried to make a
comeback, but selling pressure pushed the index below the 8,000 mark, which
resulted in a bearish candle on the daily candlestick charts. Formation of two Hammer patterns on the daily charts
suggested a reversal. But, as suggested, a Hammer pattern requires a
confirmation by a way of long white day or long bullish candle in the very next
session. If we ignore price action
of the last 30 minutes, then the benefit of the doubt goes to the bulls. On the
first day of the new series, if the Nifty50 closes above 8,000, then
chances of the Nifty50 bottoming out around the 7,900 levels can’t be ruled out .the trend in last three months is downward, We would advise traders/investors to completely avoid long positions if Nifty50 were to close below 7,900 level and prepare for much bigger cuts, which can take the index close to the 7,500 level. The Nifty50 has to cross and hold above the 8,000-8,050 levels to witness an upward move towards 8,150-8,220 levels, while holding below the 7,920 and 7,880 levels might again start the next downward leg towards 7,600 level over the next few sessions,”
chances of the Nifty50 bottoming out around the 7,900 levels can’t be ruled out .the trend in last three months is downward, We would advise traders/investors to completely avoid long positions if Nifty50 were to close below 7,900 level and prepare for much bigger cuts, which can take the index close to the 7,500 level. The Nifty50 has to cross and hold above the 8,000-8,050 levels to witness an upward move towards 8,150-8,220 levels, while holding below the 7,920 and 7,880 levels might again start the next downward leg towards 7,600 level over the next few sessions,”
TOP
GAINERS: Hindalco, Bank of Baroda, TCS, ACC, PowerGrid
TOP LOSERS: Tata Motors, Zee Entertainment, Sun Pharma, Eicher Motors, Axis Bank
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