On Wednesday nifty opened with a huge gap down of around 150 points and went further down to make a new year low of 3330. Nifty broke all the major and minor support levels with a comfortable margin during the onset of panic among the traders. From the day’s low it bounced back to get resisted around the psychological level of 3500 and same been taken out during the last hour of the trading to close at 3513. Almost 150 points recovery from the day’s low had left the traders with some kind of hope on the Wednesday evening.
In spite of taking coordinated move by the major global banks to cut their interest rates to improve the liquidity, global markets doesn’t seems to take to cue and shown some sign of recovery. The US market once again took a blood bath yesterday and closed very very weak making the lowest levels in the past 5 years. Asian market has not failed to take the cue from the US market and opened with a very huge loss of around 7-10%.
Anything can happen in the Indian market today on both the directions. I feel the opening will be very weak with the gap down in line with our peer Asian markets. Don’t be surprised if the nifty tests the Wednesday’s low in the initial hours and in very worst case may be it can break 3330 level also. As all the global markets are due for a technical bounce back and same is expected in any time. On the lower side nifty may find support near 3385, 3330 or 3255 levels. Similarly on the upper side resistance exists near 3588 or 3662 levels. During panic and emotion based trading technical support and resistance has very little importance.
Happy Trading !
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