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NIFTY SHOW - BEARS WARMING UP

Nifty closed in red at 5202,losing 20 odd points on the board.The market breadth stood in the favor of the bears with 496 advances to 965 declines.The markets gave a sedated opening ,with absolutely no fireworks.The global markets too were  stable to green.Markets were trading in a muted session keeping itself afloat 5200 levels,till the news of S & P downgrading India to negative,  strike the markets.
              The markets responded with a cut of nearly 1% in the index immediately,it did recovered from its low,but still bears made another attempt to drag down the bears  to the previous low.Technically markets bounced making a double bottom at 5160 levels.The bounce took the markets piercing 5200 levels,where,later it just managed to stay afloat 5200 levels closing today's session.Considering expiry choppiness is expected .The bears will make an attempt to expire this series in sub 5150 levels,In such an event ,bears will be empowered to drag the markets to 5080 levels,breaching the 200 DMA.
                                                  Currently  the markets are trading below the 20 and 40 DMA levels maintaining negative sentiments.The momentum indicator is also trading with a negative crossover,while the MACD continues to trade below the zero line with a negative crossover,the RSI has entered sub 45 levels adding more bearishness.Going forward markets are approaching the dynamic levels,hence the trader are suggested to be more vigilant.
                                             In the view of the expiry i maintain a cautious view naive traders avoid trading,aspirant ones need to be more cautious while initiating any positions.Watch out for 5260 support,and resistance of 5211 and 5256.

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