4th consecutive weak closing –lower top lower bottom formation and closed at a fresh five-month low amid continuing US banking crisis and FED Rate hike expectation around 25-50 basis points.
Moody’s also cuts outlook on U.S. banking system to negative from stable.
Yesterday opening was almost flat at around 17160 & day’s high printed initially @ 17224 then correction continued, broke previous day’s low 17113. Day’s low made below psychological level 17000 @ 16987. At the time of closing slight recovery hit 17075 and finally honoring 17000 mark & settled @ 17043. Day to day basis -111 points or -0.65%.
Though it formed a bearish candlestick pattern on the daily chart & FII figs are quite alarming but it entered oversold territory after four-days correction and FII’s Long short ratio also suggested bottom is not far away.... some kind of bullish divergence in the price and indicator. The index nearer the lower band of the falling channel, 16950 will likely act as crucial support. Break down basis fresh negativity only below 16950.
On the upper side resistances are 17140/180 & 17250/300. Major pull back hurdles are 17340-17400. Bearish formation to be lighted if it crosses & stays above 17444<200DSMA> though Major barrier is the Gap hurdle 17530-17590. If any pull back occurs supported by changing global cues then traders should cautious at higher levels.
On the down side below 16950 next strong demands are expected near 16850—16707/16666.
OI data indicated that immediate trading range 16800 to 17300 levels. MAX PAIN 17200.PCR = 0.50. Current RSI = 31.96. India VIX 16.22, Doji. Flat closing.
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