Bounce in Nifty fails to push market breadth in positive territory - Religare

In line with expectation, Nifty held last session's low despite choppy move in the first half and ended slightly in green to conclude the day. Considering the overall negative bias, bounce in index failed to push the market breadth in positive territory and it remained under pressure till the end.

Though majority of sectoral pivots closed flat; Oil&gas, Healthcare and PSU gained maximum while Realty got beaten down badly, down by close to four percent.

As we have mentioned in our previous newsletters also, we were expecting this bounce for three primary reasons. First, index has filed that gap and hovering around the zone while maintaining roughly above 5900 mark indicating possibility of bounce before resumption of overall down trend. Beside, Fibonacci retracement placed on intraday chart hold supports at 5900 level i.e. 78.30 % zone and oversold conditions across the board added to the trigger.

Furthermore, we expect the bounce to continue in the session too 5950 zone would act as important hurdle as per the prevailing downtrend so one should plan accordingly.

Source : Equity Bulls

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