Nifty managed to hold 7800 level report by Mustafa Nadeem CEO, Epic Research Ltd.

Mr Mustafa Nadeem, CEO, Epic Research Pvt. Ltd.

There is indecision in market and levels are tested and played out. Nifty managed to hold 7800 level while closed above it shredding 40 points. Its somewhat broadening bottom pattern is seen and if we sustain 7800 on closing basis in coming trading sessions than a bounce towards 7950 cannot be ruled out. Usually in broadening pattern two bottoms and three peaks is seen. We finished 4th wave today and 7800 plays a key role.

A lot of action is happening in stock specific front as the earnings are announced. Banking sector post dismal numbers ended down on correction and saw a deep cut while Metal, auto and energy were only supportive index. HDFC posted nice numbers among housing space and it would be interesting to see other housing companies result. Focus should still be towards agricultural stocks and fertilizer stocks. Sugar space saw renewed buying but have seen stretched rally so should be avoided.

Source : Equity Bulls

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