After opening strong, Nifty intraday high of 5275 but then turned weak again and hit day's low of 5244.
With many news pouring in it was a volatile session and it was banking stocks that showed strong weakness and on the back of rising inflation and fears of interest rate hike we saw a lot of weakness in banking stocks.
Bank-Nifty has strong support at 8882 level and this is the last hope for it.
Any closing below the mentioned level will create panic selling in banking space and we are sure to see much lower levels then.
Bank-Nifty has breached 50 Day Exponential Moving Average(DEMA) which is at 8940 and closed below it.
Now 8940 is important turning point for Bank-Nifty and if it fail to close above it then its not very detrimental for Banking Sector.
Another important support for Bank-Nifty is at 8767 and it must act as turning point in general, otherwise it will find support only at 8560.
Weakness among banking stocks will also affect Nifty and it will be very difficult for it to rise up.
Currently Nifty is finding strong support from IT-stocks and the heavyweight Reliance Industry.
Any profit booking in these stocks will be like pressing panic button and we may see bouts of several lower levels.
It is safe to trade with strict stop loss in Nifty and other large caps and traders must prefer to do day trading rather than carrying positions for the next day.
Nifty yesterday closed forming a solitary star doji which is a sign of confusion among traders and it may cause strong weakness in the next trading sessions.
Although exact weakness is confirmed by the next day closing and hence today's trading session is very important.
Today's closing will decide the future course of action of the market and Nifty.
Everyone must keep and eye on 5230 level of Nifty and closing below this level will take Nifty again to weak zone.
Nifty Levels for Today
| Nifty Pivot : 5254 | ||
|---|---|---|
| Support | ||
| 5239 | 5217 | |
| Resistance | ||
| 5275 | 5294 | 5305 |
Buy for today
| Buy Polaris SL 189 T 205-208. | |
|---|---|
| Buy ABB SL 825 T 878-890. |
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