MARKET OUTLOOK

The NIFTY opened on a positive note and failed to sustain at the higher levels. The index shed

some of its initial gains and registered an intraday low of 4863 levels.

But the index witnessed some buying at lower levels as the session progressed which helped the index recover and thus registered an intraday high of 4965 levels.

The index finally closed at 4948 levels, a gain of 50 points. With today’s movement the index has managed to close above its negative gap resistance placed at 4900-4930 levels.

Sustenance above the 4930 levels could see index test its immediate resistances placed at the 5000-5020 levels.

An Important observation to me made is that the every pullback from the fall of 5500 to 4800

levels has failed to close above the short term moving average currently placed at 5500 levels

(as shown in the chart above).

Hence a close above the short term moving average would inject some optimism and the index could head towards the levels of 5080 / 5130 levels.

Failure to sustain above the 5000-5020 levels could see the index trading in a range of 5000 on

the upside and 4800 on the downside.

The immediate support for the index is placed at 4930- 4900 followed by the 4860 /4800 levels.

A break below 4800 would be negative and trigger further declines to the level of 4740 /4700-

4690 / 4650 in the near term.