“SELL
BANKNIFTY FUTURE BELOW 15550 TGT 15500/15400 SL 15610”
“BUY
RELIANCE FUTURE ABOVE 1054 TGT 1059/1068 SL 1042”
The
market turned volatile after starting off trade on a strong note. Domestic
benchmark indices the Sensex and Nifty 50 opened the session on a positive note
and started to decline. The indices extended their losses, breaching key
supports. After going through a choppy
session in the previous day and just managing to eke out marginal gains, the
Indian equity market lost heavy ground on Thursday. Sensex declined to a three-week low as
investors reassessed the outlook for equities after last month’s rally and
before the start of the company earnings season next week. The Sensex and
Nifty slid nearly 1 per cent on Thursday as investors continued to book profit
in the recent outperformers ahead of result season which is expected to remain
weak. The Sensex ended with a loss of 215 points at 24685 The Sensex opened at
24998 touched an intra-day high of 25013 and low of 24647.
The Nifty started the session on a negative note at 7630. After hitting an
intra-day high at 7631, the contract resumed its down move. It breached a key
support at 7600 and recorded intra-day low at 7536 before trimming some of its
losses. The contract witnesses selling pressure at higher levels. Make use of
rallies to initiate fresh short positions with a stop-loss at 7,630 levels.
Continuation of the downtrend can pull the contract down to 7530 and 7500 levels.
A decisive fall below 7490 can drag the contract down to 7450 and 7430 in the
near term. On the other hand, a strong rally above 7640 is needed to strengthen
the bullish momentum and take the contract upwards to 7760 and then to 7680.
Immediate resistance is at 7700.
Valuations are still
high if you consider that the March-quarter is likely to see single digit
earnings growth. Last month’s rally was pull-back rally, which is typical of a
bear market. We’re advising investors to raise cash.
Strategy: Make use of
rallies to initiate short positions with a stop-loss at 7630 levels.
SUPPORTS: 7550 AND 7500
RESISTANCES: 7630 AND 7680
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