WHAT LIES AHEAD : NEAR-TERM PICTURE
SPOT NIFTY : Indian benchmark indices continued drowning with a sharp decline in NBFC stocks, which form a major part of the benchmarks. Further, the default by IL&FS, the infra development and finance company, dragged the sentiments down with many stakeholders like LIC and listed banks being asked to fund the company's bailout of Rs 91000 crore loan. Considering all this, the country lost the tag of Asia’s best stock market. The benchmark indices tumbled more than 2%, but the broader market indices underperformed badly, with the Mid-cap and Small-cap indices plunging 5.4% and 8%, respectively. Among the sectors, barring IT, all other sectors ended in the red, with Realty being hit the most with almost 11% loss. Technically, Nifty hit below its crucial support zone of 1922519235, which is also a trend reversal level. However, it recovered every time on a closing basis and is now consolidating at the lower levels. Hence, if the provisional bottom is made, it would either continue to consolidate or bounce back. In case of a bounce due to short-covering, we hold 11145-11205 as the resistance levels, followed by 11310-11345. For now, we do not see immediate reversal. However, higher volumes and oscillators still tilted southward point to some more downside for now. Further, Nifty also breached its 100-day EMA support. Hence, in case Nifty continues to fall, we hold 1093510860 as the crucial support levels, below which 10780-10735 would act as supports.