Trading for the week began with a marginal upside gap on
Monday, citing a massive rally on the US bourses on the previous
Friday. However, our markets failed to keep the momentum
going; in fact, the Nifty shaved off all the early gains and
eventually went on to close the day with a loss of 0.21%. The
next couple of sessions were clearly dominated by the bears
and in the process, the Nifty went on to test the
7600 7600
7600 7600
7600 mark.
On Thursday, we witnessed a minor bounce, proving to be a much required breather of the bulls. However, this small up move also got sold into on Friday as the Nifty slipped below the 7600 7600 7600 7600 7600 mark during the session. The index ended yet another week in the red, with a cut of over 2%.
Despite some positive cues on the global front during the beginning of the week, our markets clearly showed their lack of strength as four out of the five sessions of the week ended well inside the negative territory. In our last report, we had mentioned about the strong support of 7700 7700 77007700 7700.
On Thursday, we witnessed a minor bounce, proving to be a much required breather of the bulls. However, this small up move also got sold into on Friday as the Nifty slipped below the 7600 7600 7600 7600 7600 mark during the session. The index ended yet another week in the red, with a cut of over 2%.
Despite some positive cues on the global front during the beginning of the week, our markets clearly showed their lack of strength as four out of the five sessions of the week ended well inside the negative territory. In our last report, we had mentioned about the strong support of 7700 7700 77007700 7700.
Unfortunately, this support was breached during the first half of the week, which resulted in a sharp correction towards the mentioned level of 7600 7600 7600 7600 7600. The Nifty is now approaching its recent low of 7539.50 7539.50 7539.50 7539.50 7539.50, which would now be seen as a strong and a crucial support level. We are seeing early signs of the 'Two Points Positive Divergence' in the daily 'RSI' momentum oscillator; if the Nifty nearing strong support of 7540 Sensex (25044) / Nifty (7610) manages to hold the 7540 7540 7540 7540 7540 mark, then we may witness an immediate bounce towards 7700 - 7800 7700 - 7800 7700 - 7800 7700 - 7800 7700 - 7800 levels.
We believe the downside in the Nifty, if any, would be restrained going further even in the eventuality of the index breaching below the 7540 7540 75407540 7540 mark. Thus, traders are advised to make a note of both these scenarios for the forthcoming week. We recommend trading with a proper exit strategy and avoiding undue ris.
All my Update Stock Tips in Previous Stock Market Blogs for all news Stock Update and Stock market News.
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