7th November: 2 mins Nifty50 wrap up of the day
NIFTY GAPS-UP on easing of RISK-OFF. Fails to sustain above the 8500 mark – as broader markets show a dead cat bounce .…
• The NIFTY opened around the 8535.75, GAP-UP by around 100 points over last Friday. The weekend news flow on US presidential elections soothed the nerves as RISK-OFF switched in. However the very fact that NIFTY HIGH was created within the opening minutes of trade indicate the FLUIDITY in the markets. The markets largely traded in a tight 40 point range till last half an hour, when NIFTY saw profit booking setting in & dragging it down below the 8500 mark. To shut shop, NIFTY closed @ 8497.05 DOWN by 63.30 points or 0.75%.
• The NIFTY has now clawed back a bit, above the immediate SUPPORT level of 8500-8480, on a closing basis. However the fact that it has failed to sustain above the 8500 mark, as also closed near the day low; makes it vulnerable to the FLUIDITY of the market (Refer to the LIGHTNESS in positions in the market). This now brings us to rates between July 8th to July 12th ; when the market was in an optimistic tranche on the advent of MONSOON. So lies the hitch where the supports stand scattered @ 8380 – 8320 in that order. This may even open up the gates till the level of 8088 (200 DMA). The medium term picture may DIP from current SIDEWAYS to BEARISH with a DROP below the 8420 mark (although violated on intraday basis, but held on closing basis). The BULLS can be considered coming back in force only above the 8650 mark; though the path may be difficult around the 8550-8620 mark (the earlier supports).