Technical Market View: Overall selling pressure was worrisome on credit policy day

By: | Published: April 5, 2016 5:34 PM

Market breadth too has been positive since the past two sessions but it was clearly indicating pressure on broader markets in today’s trading. At the current juncture, while the candlestick and the overall selling intensity was worrisome, the overall outlook remains cautiously optimistic as the Nifty still remains in a positive overall trend but also needs to maintain a closing beyond 7,600.

bse sensex, nse niftyVolatility is likely to remain in the near term as was also suggested by Tuesday’s correction after the Nifty recently tested the 7,880 resistance recently. (Reuters)

On monetary policy day, the Nifty closed in the red due to selling through the day’s trading and also led to a closing much lower near the 7,600 mark. Volatility is likely to remain in the near term as was also suggested by Tuesday’s correction after the Nifty recently tested the 7,880 resistance recently. The important trading support level to watch for remains 7,600 on closing basis while 7,780-7,850 is the strong resistance range.

Market breadth too has been positive since the past two sessions but it was clearly indicating pressure on broader markets in today’s trading. At the current juncture, while the candlestick and the overall selling intensity was worrisome, the overall outlook remains cautiously optimistic as the Nifty still remains in a positive overall trend but also needs to maintain a closing beyond 7,600.

While the Nifty was under pressure, the Nifty Bank index was among the sectors under pressure while the Metal index too was a clear underperformer largely due to correction in many of the global commodities in the last two trading sessions. The rupee on the other hand depreciated in today’s trading and thus has not broken past its medium term supply range after closing near 66 in the previous session. The short term trend of the currency however remains positive as long as it is trading above 67.

The author is head–research, Centrum Wealth

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