Market may see further pressure on IT stocks and Metals stocks: Epic Research

Mr. Mustafa Nadeem, CEO, Epic Research

Nifty ends lower for second consecutive week confirming the shooting star pattern that was formed on weekly chart last week. The week started off on a negative bias on the basis of global cues with stress between US and Syria coupled with North Korea. This sent equity investors jitters as Nifty also couldn't surpass the top at 9270 odd levels.

Nifty paired some losses but couldn't break the resistance at 9273.9 which led to exhaustion of bulls on higher side. A bearish belt hold was also seen at higher side putting further pressure on prices. The candlestick pattern suggested a tight range in the market which was later breached on lower side with some crucial supports being broken at 9190.

As per OI data the range for the market is at 9300 on higher side while 9000 - 8900 is where the activity is higher suggesting this as the next crucial support for series. But it will be crucial to see Nifty holding or breaching 9150 in next week as it is the point of inflection in near term. A slide below that in early part of the week will signal a negative bias towards supports at 8950 - 9050. If it manages to sustain these levels then we may resume upward move but a breach of 9270 is a must for trend to continue.

In coming week we may see further pressure on IT stocks and Metals given the global cues and earnings pressure will also be in limelight. Some of the banks may look good at lower levels with specific focus on PSU banks which are looking attractive at current levels.

Source : Equity Bulls

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