|A breach of 5260 implies further weakness ahead. The level of 5127 would now be the next support for Nifty.
Nifty opened with a downward price gap and remained deep in the red for the entire session to conclude with a loss of 71 points at 5235. Amongst the sectoral indices the BSE Realty and Oil & Gas indices were the outperformers whereas BSE It and Teck indices lost the most.
The level of 5260 was breached today which induced further downside till 5217. Today’s movement has confirmed a bearish break down of an important trend line and the momentum oscillators have now registered a sell. Thus on a bounce back Nifty may face severe resistance near 5260 – 5280 range and Nifty may further succumb to selling pressure and come down to the level of 5127 in next few sessions. The trend has now turned weak at least for the short term and a decline till 5127 appears likely.