|A daily wrap up on the market, which will keep you updated on what happened in the day and what to expect for the next trading session
Bounce back in Nifty may not sustain unless it clears 5300
Nifty opened weak and traded with a downward bias for most of the session. However it retraced some of its losses and ended flat at 5220. Amongst the sectoral indices the BSE Realty and IT indices were the outperformers today whereas BSE Metal index lost the most.
We had maintained a bearish bias for Nifty and had indicated the level of 5190 to 5160 on declines. Nifty did test the level of 5171 today and bounced bas from its 200 Day EMA. In the immediate term, any bounce back may still remain short-lived till the time Nifty trades below the level of 5300. it has formed a Doji candle on the daily chart which is a sign of indecision.
A move below 5170 may weaken further and it may come down to 5047 which is the 61.80% Fibonacci retracement of the entire advance from 4686 till 5629. We recommend avoiding fresh long positions till Nifty trades below 5300.