Sensex and Nifty Open Strong in Morning Trade Today

The market gained strength in noon trade with the Sensex rising 182.07 points to 24405.39 and the Nifty climbing 62.95 points to 7424.75. The broader markets underperformed benchmarks with the BSE Midcap and Smallcap indices up 0.4-0.7 percent.

Subsequently, index consolidated within a narrow range and similar to the previous day, we saw late selloff to end the session with more than a percent cut. Yesterday, the Nifty struggled to stay beyond the 7400 mark and thus, eventually the bears took a charge to end the session almost at the lowest point of the day.

We are still reluctant to get carried away by this pessimism as we are observing a strong support in the zone of 7380 and 7320, which are 61.8% and 78.6% replacement of the recent up move from 7241.50 to 7600.45, respectively.

On the higher side, an hourly closing above 7420 may result into some intraday bounce towards 7460 – 7480 levels. Traders are advised to stay light on positions and focus more on individual stocks. 

•  NIFTY NEAR MONTH CLOSE 7383.50 BASE SUP 7339.17 BASE RES 7455.17 ATP 7400.18 PIVOT 7397.167

• NIFTY NEAR MONTH BASE TREND BEARISH REVERSAL ABOVE 7606.80 PER REVERSAL 3.02  

• NIFTY NEAR MONTH DAY'S TREND BULLISH-OVERRIDE DAY'S SUP 7350.25 DAY'S RES 7419.33