Consequently, it was a disappointing end to a session which opened strong and traded with a positive bias until noon after which the market turned nervous and gave up all its gains following record weakness in the rupee. The Indian market tumbled off the day's highs to close deep in the red, dragged down by banks, metals and infrastructure stocks.
The market breadth was negative with advances at 508 against declines of 891 on the NSE. Top Nifty gainers were TCS, HCL Technologies and Tata Motors while losers included Sesa Goa, Tata Power and Maruti Suzuki.
The consumer staples and discretionary were sought after. These scrips are acting as defensive bets in a falling market.
Technical Analysis: The markets were down 156 points and Nifty at 4860, down 45 points from the previous close. On the higher side 4900 is the strong resistance level while on the lower side 4850 and 4800 are the strong support levels.
Suggested Strategy: The markets are sliding in tune with rupee depreciation. The markets seem to be correlated to rupee swings. Rupee depreciation is favorable to IT companies but unfavorable to the markets. Keep a close watch on rupee fluctuations. Traders to be nimble footed to make the most of this type of markets. Quick entry and exits should be the watch word.
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