A daily wrap up on the market, which will keep you updated on what happened in the day and what to expect & news to watch out for the next trading session
Nifty may face severe resistance near 5960
It was a lackluster trading session today as the market kept trending lower and lower. It did attempt to pullback a couple of times but bears forced the market down. Earlier in the day, OMCs, especially BPCL and Videocon got fired up owing to a large Oil and Gas discovery in Brazil. Only 3 SENSEX stocks were 1%+ gainers, the rest were flattish or negative. There is lack of any triggers in the near term and corporate earnings would provide the direction going ahead. Till then we could see these sideways movements continuing. Among the broader indices, BSE BANKEX (-1.83%) and BSE METAL (-1.61%) lost the most. Banks have been unable to stage a comeback ever since the RBI Governor raised rates on 26th September, 2013. BSE FMCG (+0.42%) was the biggest gainer today. SENSEX and NIFTY closed the day with losses of 0.83% and 0.84% respectively.
Technical Wrap
Nifty ended the day with a loss of 49 points at 5833. In the immediate term the level of 5800 would serve as a support for the index and as long as the level is respected there may be a bounce back till 5940 - 5960 range, however the overall structure of the past few sessions is bearish and there is s a possibility of a decline till 5700 to 5750 range and below that 5500 is a possibility. We recommend a strategy of exit on a bounce till 5960 to 6000. Aggressive traders may even short sell in the mentioned range with a stop loss of 6140 and a target of 5700 and lower
