Short term update on Nifty
Today Nifty closed at 5438 with a loss of 60 points slightly higher than 1% comparative to its previous day close.
On the downward side after a very long period the market has given a close below its major support area of 5450. Now on the downward side the market has got support area of 5350 and 5200. On the higher side market is continuously facing selling pressure in the range of 5600 and above that at 5690.
In our opinion since we have given a close below the important support area of 5450 the market is heading towards a further downside with an appropriate target of roughly around 5200 to 5250 range. During this area some amount of support will come and will able to give some amount of minor bounce back but ultimately the remaining target for the market is 5200 to 5250.
In our view, BSE – Bankex, BSE – Auto and BSE – Consumer Durable will under-perform the broader market while BSE – FMCG will out-perform the broader markets.