MARKET OUTLOOK
It was a volatile beginning to the week as pendulum swung both ways. Nifty slipped past its recent lows to
post a new low around 4675 but then short covering propelled it towards the other extreme of around 4800.
In the end, it proved to be an inconclusive day as Nifty barely managed to stay in the green. Index
heavyweights like Bharti, Infosys, ONGC and L&T led the list of gainers. Losers were metal heavyweights
Tata Steel and Hindalco. Non-index gainers included Chambal Fertilisers, Dabur and LITL. Jubiliant Food
works had an excellent debut at the bourses as stock price zoomed up by around 70%. Overall volumes were
again on the higher side.
Nifty again recovered sharply from its intraday lows of around 4675 to close almost unchanged. We are
beginning to see some buying around 4650 but still the rebounds are not convincing enough. Higher levels
even on the intraday basis are being sold into. We might see volatile market within a range of about 200
points (4650-4850). Metals continue to show weakness. Banking heavyweights SBI and HDFC Bank did see
some value buying at lower levels but again it is too early to suggest any sustainable bottom. As mentioned
yesterday, Nifty has high probability of hitting atleast short-term bottom anywhere between 4600 and 4700
but this process/confirmation might take a few days. It would be prudent to wait on the sidelines atleast for a
couple of days more.
Nifty Closed Flat
After a weak start Nifty bounce back from the lows and close flat. As trend remains down traders are
advised to avoid long position and sell on rallies. Any sign of weakness should be used as selling
opportunity. Short term support for the Nifty is seen around 4700. close below 4700 is likely to accelerate
the selling pressure which could drag Nifty to much lower levels. Support for the Nifty is seen around 4700
level, Resistance for the Nifty is seen around 4820