Major Support 18131 – 17314
Major Resistance 18475 – 18753 – 18944
NSE Nifty 5482.00
Major Support 5453 – 5195
Major Resistance 5557 – 5633 – 5702
The RBI policy breaks the momentum in the markets. To add to it the Lokayut report on illegal mining in Karnataka leads to players getting cautious about a few companies being named which lead to further selling in the markets. All in all the last week was a bad time for the markets. Technically this sell off came in when the markets were trying to breach past the resistance from the falling trend line joining all the recent tops from November 2010. It is almost 9 months that the indices have not moved much. They continue to trade in a range of 10%. The indecisiveness is clear with the markets making lower tops and higher bottoms in the last 7 months. This time the direction of the markets is expected to be decided when the indices reach the earlier bottoms. If they breach the earlier lows then that would mean weakness and bears gripping the markets. For the markets to get into a strong hold of bulls they need to break past the trend line resistance which now has gained a lot of importance with the current formation. As of Technical levels watch resistance for the Sensex @ 18475 and for the Nifty @ 5557 levels. Below this the indices would remain under pressure and try and test supports @ 17314 for the Sensex and 5195 for the Nifty. Individual scrips will continue to shine and therefore it is advisable that investors hold a scrip specific view…
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