|Nifty still in bearish territory till it trades below 4925.Nifty opened extremely weak but bounced back as the session progressed and erased all its losses to end the day with a gain of 6 points at 4848. Amongst the sectoral indices the BSE CG and Realty indices were the outperformers whereas BSE CD index lost the most.
Nifty started the day on a grim note and it breached the previous swing low of 4788 to form a new low of 4770. After today’s recovery, Nifty has formed a bullish hammer pattern on the daily chart. Thus there is a possibility that it may further bounce back till 4885 to 4900 range.
However the level of 4925 is a stiff resistance for Nifty for the immediate term. Till the time it is unable to cross the level of 4925 it still appears susceptible to sudden sell off which may take it to the recent low of 4770 and lower. However, a break out beyond 4990 is required to confirm a short term reversal. Until then the trend continues to remain weak. We do not recommend any bottom fishing at present juncture.