Market fails to sustain at higher levels, as SELLING pressure comes to the fore. NIFTY closes below the 8100 mark for first time since June 2016.…
• The NIFTY opened around the 8105.10 mark, marginally down by around 5 points over Wednesday. The market showed some initial resilience, as NIFTY had a brief touch around the 8150 mark in the first one hour. However it failed to sustain the levels, as selling pressure intensified. What ensued was a systemic LOWER TOP & LOWER BOTTOM pattern, that saw the NIFTY going DOWN to 8060 mark in last half an hour, before closing @ 8079.95 DOWN by 31.65 points or 0.39%.
• Per say, the market continues to drift DOWNWARDS without any real momentum. Thus the dynamics of the market are little changed. we sense one more leg of downside towards 7930 – 7900 levels which coincide with Brexit day low and 50% retracement (6825 – 8968) and is likely to act as a demand zone. As oscillators are placed in oversold territory, a meaningful bounce cannot be ruled out, but in such scenario, the upside would be capped at 8250 – 8300 levels.