Yesterday was one more panic day in our market. Nifty opened week and traded uni-directionally downwards breached all the support levels comfortably. Important support of 3800 also been breached to make a new low of 3777. There was blood bath across all the sectors which may be attributed to redemption from large institutions for the quarter ending September. Yesterday’s action has made the weekly chart more damaged in addition to the weakness imparted to it by last week Friday’s market move. From the day’s low nifty bounced almost 100 points which may be due to short covering and profit booking.
US market crashed in a jaw dropping manner as the financial rescue bailout package plan failed in the Congress voting. Asian markets also opened and trading very weak. Inline with global market nifty is expected to open in a gap down manner. Even a gap down of 100-150 points or more cannot be ruled out.
On the lower side nifty may find support at 3752 or 3659 levels. Similarly on the upper side resistance exists at 3901, 3978 or 4040 levels. It is to be noted that we have entered oversold region after whatever happened yesterday. So technical bounce back is due and is expected anytime if not today may be in couple of trading sessions. On the lower side don’t be surprised if the nifty moves to 3636 levels to test the 200 week moving average.
SUN OUTAGE: Between 24th Sep.’08 to 8th Oct’08 market will remain closed between 11 25 hrs to 12 10 hrs due to sun outage and market will close at 16 15 hrs instead of 15 30 hrs.
Happy Trading !
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