BY A STAFF REPORTER: Yesterday Opening was higher at 18101 & High printed at 18120 but bulls failed to cross crucial 18120 barrier <5-9 DSMA bearish juncture zone> and then after breaching 18000 mark corrected heavily sank to the day’s low of 17893. Taking 100DSMA support exactly from there it managed to recover some of the losses in the last hour to close 51 points lower at 17992. Closing slipped below the psychological 18000 mark & this was the 2nd consecutive down fall mainly started from 18250 failing to cross Devil cross point 18275 that was bearish 20-50 DSMA juncture point.
Chartically it formed an another strong bearish candle on the daily charts with the lower shadow indicating support-based buying from 17900 <100DSMA>.
Yesterday we have seen Selling pressure mainly in banking - financial & technology sectors after Wednesday night’s Hawkish FOMC minutes & volatility may continue over the short term as long as sustains below 18250-18300 mark.
On the lower end, the support is visible at 17800-17750. On the higher end, the resistance is visible at 18250-18300, above which a bullish reversal may happen.
As since Dec 1st we are in as per Daily chart pattern Down trend lower tops and bottoms type formation so any pull back recovery immediate basis fails to cross 18120 mark Nifty is expected to revisit the recent swing lows of 17775 in the short term after breaking 100DSMA life line support 17900.
On the Up side Resistances are :- 18062—18116 & then only 18150—18203.
On the Down side supports are :- 17902 & then 17868-17835 & major 17781.
As per Option data broad based trading range is 17700-18500 in the coming sessions. A decisive break on either side will give a clear direction to the market.
India VIX was down 1.41 percent from 15.20 to 14.98 levels. Volatility needs to now cool down below 14 for stability & bulls favour.
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