Sharp Short Covering Rally Today But Overall Market Negative Biased

  • Editors Pick
Abhishek Parakh - Equity Pandit
http://www.equitypandit.com/

Last Trading Session: Exactly as predicted by EquityPandit, Indian Stock Market opened gap positive for the day. EquityPandit predicted that market would see a sharp bounce but traders should go short at every positive rally would end up in selling and exactly same happened. Indian Stock Market opened gap positive but was not able to sustain higher levels and fell down sharply. Market managed to see strong support near 7940 levels and bounce back making new highs of the day. Finally, market closed positive for the day with Nifty 50 closing right below EquityPandit’s predicted resistance levels of 8005 like a dot.

Today: Indian Stock Market would open gap positive. Technically, Indian Stock Market is still in negative zone. Now, since Nifty managed to close above 8002 levels, the movement get opened upto 8100-8170 levels where next resistances is placed. Remember, this is just a short-covering rally and not the positive trend, so this positive movement would not last longer. Every upmove would see selling coming in. Traders can again go short above 8100 levels for Nifty, if it comes, with strict stoploss of 8170 levels on closing basis. Nifty, if managed to close above 8170 levels then it would be considered as a reversal has taken place and we would see a big breakout in days to come. In that case traders can initiate fresh long positions. But close below 8170 levels would again end up in negative rally. For now traders can wait for some short-covering rally and again sell Nifty, Nifty Bank and Stocks near EquityPandit’s predicted resistance levels. Market would remain rangebound for next few days with 8105-8170 as resistance and 7895-7777 as support for Nifty. One can buy near supports and sell near resistance levels.
FIIs were net sellers of Rs.692.85 crores whereas DIIs were net buyers of Rs.1075.2 crores in cash market for last trading session. Nifty would see strong support at 7897-7800-7777-7645 whereas strong resistance would be seen at 8100-8170-8200-8240 levels. Since, EquityPandit’s support and resistance levels always meet accuracy; hence traders are suggested to follow them for good profits.

Important Results To Be Disclosed Today: PC Jeweller Ltd and Siemens Ltd. (NS: SIEM )

NSE Nifty: (8002) The support for the Nifty is 7897-7800-7777-7645 and the resistance to the up move is at 8100-8170-8200-8240 levels.

NSE BankNifty: (18549) The support for BankNifty is at 18320-18225-18140-18045 and the resistance to the up move is at 18595-18690-18780-18888 levels.

BSE Sensex 30 : (25960) The support for the Sensex is at 25760-25624-25540-25430 and the resistance to the up move is at 26000-26060-26180-26270 levels.

Add Chart to Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
Please try another search

Related Articles