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Market Commentary
Selling pressure remains unabated - Angel Broking
Posted On : 2013-04-04 21:26:19( TIMEZONE : IST )
Yesterday, indices opened with half a percent downside gap as indicated by the SGX Nifty. Indices slipped lower during the initial hour of the trade and oscillated within a narrow trading range. However, post midsession, selling pressure intensified and markets ended the session with nearly a 2% loss. All the sectors ended on a losing side among which Realty, IT and Teck counters were among the major losers. The advance to decline ratio was strongly in favor of declining counters (A=907 D=1850) (Source-www.bseindia.com)
The '20-day EMA' and the '20-week EMA' are placed at 18992 / 5734 and 19098 / 5779 levels, respectively.
The '200 Day SMA' is placed at 18556 / 5627. The momentum oscillators viz, 'RSI' and 'Stochastic' are now signaling a negative crossover.
Wednesday's weak closing was followed by a gap down opening in our benchmark indices. During the first half the bulls made a valiant effort to move upwards but failed to do so as indices plunged sharply from the day's high immediately post midsession. Selling pressure remained unabated as indices could not hold on to their strong support levels of 18525 / 5600 and eventually closed well below it. Going forward, indices may slide towards the immediate support level of 18255 / 5548. Any move below this level may trigger extreme pessimism in the market. In this scenario, indices may slide further to test 18200 / 5500 level. On the flipside, yesterday's high of 18734 / 5645 would act as a strong resistance in coming trading session.
Yesterday, Bank Nifty opened with a downside gap in line with our benchmark indices and selling pressure throughout the day led the index to close well inside the negative territory. The momentum oscillators on the daily chart have turned negative. Indices are now approaching the recent swing low of 11048. A breach of this support will intensify selling pressure in the index. In this scenario the index is further likely to drift lower towards 10970 - 10887 levels. On the upside 11300 - 11330 levels are likely to act as resistance for the day.
