MARKET OUTLOOK 26rd Sept

The NIFTY opened the session on a negative note and plunged to an intraday low of 4829 levels.

The index witnessed a pullback from the lower level which led it to an intraday high of 4930

levels. However the index failed to hold on to the higher levels and finally closed at 4867 levels

with a loss of 55 points.

With today’s movement the index has registered a breakdown from its critical support level of

4900-4910 levels.

This breakdown suggests that the index is likely to decline towards the level of 4840 /4800 /4750-4720 (recent swing low level) in the near term, if it sustains below the 4900

levels on a closing basis.

Further it is to be noted that the index has witnessed a sharp fall of more than 250 points in the

last 2 sessions which has stretched the short term indicators into an oversold territory.

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 4910 followed by the 4970 / 5025 /5060 levels.