Indian Indices to witness sharp gap down opening - Nirmal Bang

Indian equity settled flat with positive bias on yesterday as the market participants remain cautious ahead of outcome of the Federal Reserve meeting which will decide about the future of QE3. Consumer durables, metal, realty, oil & gas and banking stocks gained. However, auto, power, PSU and healthcare witnessed a fall. At the close, the Sensex ended at 19,245.70, up 22.42 points or 0.12%. Meanwhile, the Nifty was up by 8.65 points or 0.15% at 5,822.25.

Nifty Technical Outlook

The index is likely to witness sharp gap down opening below the crucial support of 5,780. One can expect selling pressure to continue at higher levels. There is a crucial support at 5,730-5,680 levels which is the recent rising widow pattern.

Action: Nifty has an immediate support at 5,730 levels and decisive close below expect declines to 5,680 & 5,650 levels.

The Bank Nifty has closed below the important resistance of 11,900 levels in past few trading sessions and close below 11,750 levels one can expect further weakness and declines to 11,450 levels. There is a strong resistance at 11,880 & 11,920 levels on the upside.

Source : Equity Bulls

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