MARKET OUTLOOK

The Nifty opened on a negative note and plunged to an intraday low of 5116 levels. The NIFTY
lost close to 200 points during the early part of the day’s trade. The index witnessed a pullback
from the lower levels and finally closed at 5211 levels with a loss of 120 points.
The most important observation is that the index has registered a breakdown from its critical
support level of 5270 levels (as shown in the chart above). This breakdown suggests that the
index is likely to decline towards the level of 5100 - 5090 / 4970 /4800 levels in the near term.
Another key observation to be made is the oversold reading on short term indicators. Hence a
pullback from the current level cannot be ruled out. Any up move from the current level is likely
to face stiff resistance around the 5270-5330 (Negative Gap Resistance) followed by the 5400
levels.