In the trading of April 6 also, the selling pressure dominated the market. The Sensex-Nifty saw a fall of about 1 percent. Weak global cues, US Federal Reserve’s Hawkes commentary and FII sell-off saw the impact of trading yesterday. Private banks, financial services, IT, select auto and FMCG stocks were under pressure. The Sensex closed at 59,610, down 566 points yesterday, while the Nifty closed at 17,808, down 150 points. Nifty formed a small bearish candle on the daily chart.
Talking about the broader market, it had seen much better performance. The Nifty Midcap index closed with a gain of 0.6 per cent and the Small Cap index by 0.1 per cent in lotus trading.
Nagraj Shetty of HDFC Securities Lets say a small negative candle formed in yesterday’s trade with minor upper shadow. The pattern is indicating a short term top reversal at the swing high level of 18,114 and a downward correction in the market. The overhead resistance of the down sloping trend seems to have acted as a major hurdle for the market. The effect of which has been seen as a trend reversal. Currently Nifty is looking above the previous upside gap located at 17,800 level on 4th April.
Nagraj Shetty further said that the short term trend of Nifty is indicating the possibility of a correction at this time. We can see Nifty going down towards 17,600 in the next few trading sessions. If the Bearish Island Reversal is confirmed, then the market may slide further in the coming trading sessions.
Here we are giving you some such data, on the basis of which it will be easy for you to catch profitable deals. Please note here that the Open Interest (OI) and Volume of Stocks figures in this story are the sum total of three months’ data, not just the current month.
Key support and resistance levels for Nifty
The first support for Nifty is located at 17,758 and after that the second support is located at 17,708. If the index turns upwards, then it may face resistance at 17,879 then 17,951.
The first support for Nifty Bank is located at 37,475 and after that the second support is located at 37,317. If the index turns upwards, then it may face resistance at 37,830 then 38,026.
Global cues weak on the day of weekly expiry
Global cues are looking weak on the day of weekly expiry. Asia is under pressure. SGX NIFTY is trading down around 100 points. US markets have also seen a decline due to the indication of strict monetary policy in Fed minutes. The NASDAQ closed down more than 2 percent yesterday. Today there is a quarter percent pressure on DOW FUTURES.
Key Points of Fed Minutes
The Fed has hinted at sharply reducing the balance sheet. There have also been signs of a strict monetary policy. The Fed will withdraw $95 billion from the system. At the same time, it will withdraw $ 60 billion from bonds. Will withdraw $35 billion from mortgaged securities. Balance sheet reduction will start in 3 phases from May.
Crude oil prices soften
There is some relief on the crude front. Crude oil prices fell sharply on the prospect of increased supply. Brent has come near $102. After America, the second largest consuming countries will also issue crude from the reserve.