Nifty closed in red at 5064 losing 75 points on the cards.The nifty did gave a 1% gap up opening following strong global cues and favorable outcome of Greece election .The markets made their move a treaded sideways as they were anxiously waiting for the domestic treat.But,instead the RBI disappointed the participants by keeping the Repo rate and Cash Reserve Ratio(CRR) unchanged.
With this news the trend started unwinding within no time ,players started booking profits,Soon the green lawn turned into red carnage.The most affected by this were the banking sector.The markets turned deep red bearing a cut of more than 1.5%The overall markets breadth was negative with 437 advances to 1023 declines ,this was all the financial story.
Technically nifty has formed an engulfing bearish pattern on the daily charts.Since it has a very clear expression ,it appeals me to say that the markets might trade lower to find support somewhere in coming sessions.In spite the cut ,markets managed to stay afloat 40DMA levels which will serve as a hope for the bulls. Taking into consideration the fall,the charts still looks bullish,and i still move on with my suggestion of buying on dips,Today's fall could also be taken as an opportunity for the buyers to enter, but they should have higher capitalization to carry the positions for few days.
Towards the lower side markets are expected to find support around 4950 levels,and upside still remains the same as 5200 and 5400.
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