The last day saw a pullback and it almost neutralized the index loses for the day before. But can we call it a bottom? Well, some people will try to find it for sure. But I am not very sure about that. Yes Nifty can bounce back another 30 points to 2650 levels; but then the problem is still form the large caps that I was speaking about in my previous post.
Many people appreciated my previous post and my sincere thanx to all of them for reading the article. Going forward, NTPC faces the stiff resistance around 177.9 and has formed a head and shoulders pattern on charts. Similarly RIL has a resistance at 1168 which was so far the support line. It broke that trendline but could not cross it back during the retracement on Friday. This clearly shows the overhead supply exceeding demand. The other main concerns were the defensive FMCG like HUL and ITC breaking loose and they also have a major index weightage.
On the global arena, S&P pulled back during the last half hour to close flat. It has no support around this zone and a probable pshychological support may come at 650 and then at around 610. Yes, it may so happen that S&P will remain flat for the next couple of days but that may be the time to hammer Nifty. Dont forget that S&P has already collapsed some 20% in 20 days.
Lastly, I am getting worried with Infosys. 1226 is the resistance zone. IF that is crossed on closing basis for 2 days, then we might get the desired support from IT sector. But if Infy do not cross 1226 and closes below 1193, then it will be really difficult to save the index because that will then set a short term target of 900 for the stock.
Many people appreciated my previous post and my sincere thanx to all of them for reading the article. Going forward, NTPC faces the stiff resistance around 177.9 and has formed a head and shoulders pattern on charts. Similarly RIL has a resistance at 1168 which was so far the support line. It broke that trendline but could not cross it back during the retracement on Friday. This clearly shows the overhead supply exceeding demand. The other main concerns were the defensive FMCG like HUL and ITC breaking loose and they also have a major index weightage.
On the global arena, S&P pulled back during the last half hour to close flat. It has no support around this zone and a probable pshychological support may come at 650 and then at around 610. Yes, it may so happen that S&P will remain flat for the next couple of days but that may be the time to hammer Nifty. Dont forget that S&P has already collapsed some 20% in 20 days.
Lastly, I am getting worried with Infosys. 1226 is the resistance zone. IF that is crossed on closing basis for 2 days, then we might get the desired support from IT sector. But if Infy do not cross 1226 and closes below 1193, then it will be really difficult to save the index because that will then set a short term target of 900 for the stock.
1 comment:
i am not at all an TA person.but one thing i see that every retail investor is short in this market.This make me feel uncomfortable about being confident about further downtrend in spite of worsening macros.The case may be that when everyone is so bearish that is when the operators come up with a reverse shock.I have a strong feeling that the market is going to bounce back in near term atleat.moreover the result season and the election is round the corner.Historically market has stabilised after the polls in India.So..is there a scope of any contrarian long?
One morething the movements of two stocks are very surprising
1.NTPC
2.Powergrid
I think with every bounce back they will go from strenght to strength.anyways happy holi
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