The Nifty opened the session on a bearish note on the back of negative cues from its global peers. The index spent the entire session trading in the negative territory and the selling pressure increased as the session progressed.
The index registered an intraday low of 5433 levels and finally closed the session at the 5456 levels with a loss of 60 points.
As discussed in the previous updates, we have consistently emphasized the importance of 5480 as a critical support for the index.
We had mentioned that a break below this level could start a fresh round of decline, which could take the index to 5435 / 5380 levels and the nifty did that.
With today’s movement the NIFTY has managed to achieve our first downside targets of 5435 levels. Incase NIFTY sustains below the 5435 levels then it could head to its next support level of 5380, below which the selling pressure could accentuate to levels of 5343-5330 (NIFTY Gap support area).
Any pullback from the current level is likely to face resistances at the 5480 /5520 levels.
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