MARKET OUTLOOK

The Nifty opened on a negative note on back of weak global cues and plunged to an intraday low
of 5054 levels. The index witnessed a pullback from the lower levels and registerd a high of 5204
levels. The NIFTY finally closed at 5118 levels with a loss of 92 points.

The index continued its downward movement after the breakdown witnessed from its crucial
support levels of 5270 levels. The index has managed to achieve our first downside target of
5100-5090 (intraday basis). The index is likely to gain momentum on the downside once it
sustains below the 5090 levels and could test the following levels: 5050 / 4990-4970.

Further it is to be noted that the index has witnessed a sharp fall of more than 400 points in the
last 6 sessions which has stretched the short term indicators into an oversold territory. Hence the index might witness a sharp pullback from the current or lower level. On the upside the index
has multiple resistances at the 5230 /5270 levels.