Markets are directionless. Volume is not considerable. Global cues not favourable. Analysts predict a correction in the indices. So investors will do well to take calibrated positions and use SL and thedging tools. Today market moves in positive direction but may not sustain-say Analysts.
Analysts’ views:After two days of sharp correction, the market witnessed a relief rally due to strong global market performance. From the day’s highest level, the Nifty shed nearly 200 points before recouping some lost ground. However, one more time it took support near the 10 day Average and reversed sharply. Technically, on intraday charts the index has formed a double bottom formation. We are of the view that the 10 day SMA or 16,450 would be the immediate support for the bulls. As long as it is trading above the same, an upside could lift the index up to 16,550. On the other hand, trading below 16,450 could possibly open one more leg of correction up to 16,350-16,300 levels.
Rupee At Close | The Indian rupee gained 17 paise to close at 74.22 against the US dollar. The local unit opened strong at 74.27 against the greenback and moved in a range of 74.22 to 74.30 in the day trade.
Nifty filled the downgap made on Friday by opening higher but closed below it as it gave away a large part of intraday gains. However, the fact that it recovered from the intraday low and did not make a new low compared to the previous day is encouraging. The advance-decline ratio improved marginally compared to the previous day but is still much below 1:1. 16,376-16,396 is the important support band now for the Nifty, while a close above 16,569 would result in the return of some confidence in the markets.
The Sensex rose 226.47 points, or 0.41 percent, to end at 55,555.79, while the Nifty closed 45.95 points, or 0.28 percent, higher at 16,496.45.
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