WHAT LIES AHEAD : NEAR-TERM PIC­TURE

Flash News Investment - - TECHNICALS -

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.

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