Status quo from RBI, market remains under pressure: Angel Broking

By Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):

"A volatile session on Tuesday was followed by a gap up opening with a decent margin of more than 100 points in Nifty. This was mainly on the back of smart recovery seen in US bourses after taking a solid knock on the preceding day. However, the early morning lead was very short lived as we saw index correcting right from the word go. Eventually, the Nifty ended the session with a marginal cut of 0.21% from its previous close.

Today, despite being RBI Monetary policy day, we did not see much volatility, in fact, due to expected outcome (status quo); the Nifty continued its gradual move in the downward direction post the event. Going ahead, 10528 - 10614 would be seen as immediate hurdles and unless index doesn't cross this wall, we are likely to see some pressure in the market. A move beyond 10614 doesn't change the near term trend; but, it would certainly extend the bounce back towards 10730 - 10780 levels. On the lower side, 10423 - 10347 remains to be intraday supports.

We reiterate that traders need to be very selective as the volatility is likely to remain on the higher side and also with such global issues; the opening direction is mainly dictated by the overnight cues from the global markets. Hence, one should avoid taking any kind of undue risks and should rather remain light on positions. In fact, it would be a prudent ploy to stay light and avoid making any kind of bottom fishing till the definite signals emerge."

Shares of A.K. Spintex Ltd was last trading in BSE at Rs.41 as compared to the previous close of Rs. 40. The total number of shares traded during the day was 7425 in over 34 trades.

The stock hit an intraday high of Rs. 41.6 and intraday low of 38. The net turnover during the day was Rs. 284140.

Source : Equity Bulls

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