FMCG, Capital Goods and Metal counters were among major losers - Angel Broking

The opening session of the week started on a flat note but immediately witnessed selling pressure in FMCG heavyweight ITC. The trade deficit data proved to be extremely disappointing and the marked cracked further to close at the lowest point of the session. For the day all the sectors ended in the red among which FMCG, Capital Goods and Metal counters were among the major losers. The advance to decline ratio was strongly in favor of declining counters. (A=808 D=1542) (Source-www.bseindia.com)

- The '20-week EMA' and the '20-day EMA' are placed at 19236/ 5830 and 19522/ 5925 levels, respectively.

- The '89-day EMA' and the '200-day SMA' are placed at 19212/ 5822 and 18846 / 5714, respectively.

- The daily "RSI" and "RSI Smoothened" momentum oscillators have given a negative crossover.

In line with our expectations, the market fell below the crucial support level of 19903 / 6040 and corrected lower to test the mentioned level of 19743 / 5993. The market has witnessed broad based selling and the leading sectors such as Banking and FMCG fell significantly in yesterday's session. Also, the 'RSI' and 'RSI smoothened' momentum oscillators have given a negative crossover in the overbought zone. Going forward, if the market sustains below yesterday's low of 19667 / 5972, then the possibility of testing the 19542 - 19450 / 5928 - 5900 levels cannot be ruled out. On the upside 19851 - 19964 / 6030 - 6060 levels may act as resistance for the day.

Yesterday, Bank Nifty too opened on a flat note in line with our benchmark indices but selling pressure throughout the day led the index to close with a loss of 1.65%. Similar to the charts of the benchmark indices the momentum oscillators in the Bank Nifty daily chart have given a negative crossover The effect of this technical tool would be seen only if the index sustains below the 12514 level. In this scenario the index is likely to drift lower towards 12447 - 12378 levels. On the upside 12670 - 12720 levels are likely to act as resistance for the day.

Source : Equity Bulls

Keywords