The market fell mainly due to non-supportive results from front line companies like Reliance, Hdfcbank, and TCS. Secondly the overbought status of the Index. Though Nifty has hit a record high at 12430, after profit booking, markets closed in deep red. Nifty is having support between 12225 and 12150 levels for the next 2-3 days.
Technically Nifty50 has broken its Support at 12294 on a closing basis on daily charts, giving a hint at more fall if breaks 12200 then to 11800- 11900 which are almost 2.5% on the Index. But that’s not the case to happen suddenly, maybe on a weekly or a monthly basis that might come, due to strong bullish sentiments which led Index to open at an all-time high of 12430.
What might drag the Index further?
After hitting records highs at 1600 levels, the post results scenario is little different, as we can see bearish engulfing at higher levels. This might be an early indication that the Index may further see selling pressure. Import levels on RIL is 1500- 1400, that could be a short-term fall if all things considered to be positive.
2. HDFC BANK
Same in case of HDFCBANK, the Bearish Engulfing candle suggesting that there could be further downside pending in it. Gradually we may see some correction in HDFC Bank too, which will add to the downfall of Index
What’s our take on the Markets
Go with the markets is simple to make, but we are still Bullish on the Index. Given the fact that the heavy weighing stocks of the Index are on correction mode, we still believe that the Markets are not done yet on the long side. We predict markets to hit further highs in the coming days. It may not be in the Weeks to come, but maybe in Months time, it is possible. We strongly recommend any correction in the Index is a strong buy of quality stocks if one is looking for any investment opportunities. Otherwise, traders need not worry about Index prediction, as both the sides they can take positions.
- Santhosh Kumar V