Ahead of the August series derivatives settlement day, Indian markets were seen under pressure with the benchmark index dropping below the crucial 5300 mark in its fourth straight losing session. The session was particularly bearish for the blue chips index with selling persistent throughout the day after the short-term momentum had rolled down the day earlier. Short-term support of 5220 (20-day SMA) has been violated and we now expect a test of the next support of 5260 (50-day EMA) in the immediate near term. Volumes were relatively lower but the overall breadth continues to remain weak, underlining the bearish structure. Volatility index, also known as ‘fear index’ has started to tick up signaling downside risks to the market. We expect Nifty to drop down to the 5260 area where multiple supports from 50-day EMA and the ‘bullish gap’ area should help a minor rebound rally, however the short-term down trend has been established. Any break of supports can extend the slide towards 5220, closing the bullish gap.
Today’s session was broadly negative with big cuts seen in Realty (-3%), Metals (-1.8%) and Auto (-1.37%) indices. Traders continue to seek for safety in the defensive FMCG (+0.57%) and Healthcare (+0.27%) sectors. For the first time in many sessions, the broader markets fared relatively better than the blue-chips with Mid-cap index losing 0.54% and the Small-cap index losing 0.85% indicating and oversold state and perhaps a technical relief.
Bullish Setups: INFO, TCS, HUVR, ITC, RBXY, APNT, DRRD
Bearish Setups: CNXBANK, HDIL, HNDL, ONGC, JPA, STLT
No comments:
Post a Comment