Market Closes Below 100 DMA For The First Time After January, Hold Short

Last Trading Session: Indian Stock Market opened positive as predicted by EquityPandit. EquityPandit predicted that market would see some relief rally but traders should not initiate long positions until Nifty closes above 9941 levels. EquityPandit also predicted that if Nifty is unable to trade above 9892 levels then further downfall would be seen that may take Nifty near 9740 levels and exactly same happened. Indian Stock Market moved positive while opening but saw strong resistance near EquityPandit’s predicted resistance levels of 9918 and fell down sharply from there. Nifty was not able to sustain above EquityPandit’s suggested levels of 9892 and hence saw a sharp downfall of 180 points from there. Nifty saw a sharp negative fall after Indian Army disclosing the surgical strike on hideouts of Naga militants at Myanmar border. Finally, Indian Stock Market closed gap negative for the day.

Today: Indian Stock Market to open flat. Technically, Indian Stock Market is still in negative zone. Though Global market are looking with optimism over the health of U.S. economy and U.S. President Donald Trump’s tax-cut plan but Indian Stock Market, including Nifty, Sensex and BankNifty closed below 100 DMA for the first time in last 8 months after January 2017. This suggest that market has entered into bearish phase that can drag market down to 9500-9311 levels for Nifty. Now, nearest support is the last pivot level of 9685 for Nifty, from which it rebounded in last correction. Breaching levels of 9685 on downside would confirm Double Top pattern for Nifty, that again suggest next target of around 9500-9311 levels for Nifty. Nifty needs to close above 100 DMA which is placed around 9781 levels and if Nifty remains below these levels then downfall towards 9500 levels is eminent. BankNifty target is set to 23500-23200 in upcoming days. Furthermore, various issues like increasing crude prices, weakening Rupee, FII outflows and geopolitical concerns are causes of concern for Indian Stock Market. Today is F&O Expiry and some short covering rally can be seen due to volatility but traders should not make a mistake to go long in the market at any point for now.

FIIs were net sellers of Rs.856.28 crores whereas DIIs were net buyers of Rs.1858.29 crores in cash market for last trading session. Nifty would see strong support at 9710-9685-9640-9608 whereas strong resistance would be seen at 9781-9800-9820-9860-9885 levels. Since, EquityPandit’s support and resistance levels always meet accuracy; hence traders are suggested to follow them for good profits.

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Stocks In F&O Ban Period: DHFL, DLF, GMRINFRA, IBREALEST, JPASSOCIAT, JSWENERGY and RCOM.

NSE Nifty: (9736) The support for the Nifty is 9710-9685-9640-9608 and the resistance to the up move is at 9781-9800-9820-9860-9885 levels.

NSE BankNifty: (23813) The support for BankNifty is at 23740-23660-23500 and the resistance to the up move is at 23880-23960-24090-24180 levels.

BSE Sensex: (31160) The support for the Sensex is at 31060-30940-30865 and the resistance to the up move is at 31225-31345-31380-31430-31505 levels.

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