Nifty Un­der Pres­sure, Sup­port Seen at 9700

The Economic Times - - Smart -

Nifty has en­tered the over­sold ter­ri­tory but this may just be a pause in a bull mar­ket. The Nifty may find sup­port around the 9,650-9,700 lev­els. In­vestors will be bet­ter suited to avoid stocks in the re­alty and in­fra sec­tors. In the com­ing weeks, on the down­side 9,440 will be an im­por­tant level to watch.

SUDHAKAR PATTABIRAMAN,

The In­dian bench­mark in­dices tum­bled last week on the back of geopo­lit­i­cal ten­sions. The Nifty gave strong bear­ish can­dle for three days in a row. On Thurs­day, though the Nifty breached the 50-Day EMA around 9,780 on an in­tra­day ba­sis, it bounced back from the low of 9,776 and closed above 9,800. But, on Fri­day, the in­dex opened gap down, well be­low 9,780 but man­aged to hold on to 9,700 mark. Dur­ing the week, FIIs sold shares worth INR 2,615.9 crore and DIIs bought shares worth ₹ 4,498.43 crore. What is in store? After the sharp fall that we saw in the mar­kets last week, one could

pri­mar­ily driven by short cov­er­ing. Any pull back to­wards the above-men­tioned lev­els are likely to be used by traders for cre­at­ing fresh short po­si­tions. The mo­men­tum os­cil­la­tor RSI is at 36 level and trend­ing down­wards, sug­gest­ing that the short-term trend is down. MACD has also given a neg­a­tive cross­over in the daily charts. Bullish mo­men­tum will emerge and can be con­firmed only if the Nifty suc­cess­fully takes out 9,950 on the up­side and make a base around there. How­ever, if the Nifty breaches the sup­port of 9,700, then we could slide fur­ther and move to­wards 9,565 in the short term. This is where the 100-Day EMA is placed. What could in­vestors do? Cur­rently the Mar­ket Pulse shows “Up­trend Un­der Pres­sure,” it’s not clear which di­rec­tion the mo­men­tum will swing. So, JAY THAKKAR,

HEAD-RE­SEARCH OP­ER­A­TIONS, WIL­LIAM O’NEIL IN­DIA CMT, AVP- TECH­NI­CAL AND DE­RIV­A­TIVES RE­SEARCH, ANAND RATHI SHARE AND STOCK BRO­KERS

The Au­gust series has started with a cor­rec­tion and it is ex­pected to con­tinue going for­ward as well. The

The In­dex is quite over­sold in the short term and it has a strong sup­port in the zone of 9650-9700 lev­els. We ex­pect a bounce from this sup­port zone and

2) 3) What could in­vestors do?

Where are we?

Where are we?

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