Once again the Bears tightened their grip suppressing the pullback
below 4700 points. During the morning session the frontline stocks
moved up in rotation holding the Indices in positive territory but
later the Bulls attacked with full vigil. Short selling coupled with
some bull liquidation nullified the entire previous day’s gains. The
A/D ratio was marginally negative but the volumes were higher
than the previous session.
Reliance group and Banking stocks led the decline and with others
joining the Nifty marginally breached the support at 4581 in the fag
end of trading. It completed the 38.2% retracement (4674) of the fall
from 5167-4369 points. Unless 4756 points (16K on BSE) is not
decisively crossed the short term trend remains down. Support in
declines is at 4488 and 4390 points.
Intraday, 4532 points is the support in the Nifty. A decisive breach
of it would indicate more pain for the Bulls. Pivot is pegged at 4610
points while resistance is at 4664-4674 points. Those who booked
part profits in rallies (mentioned yesterday) saved themselves from
the 110 points slide. The Bears have put the ball back in the Bulls
court. They need to absorb the selling pressure without any further
damage (last week low). A tussle in on; protect your positions.
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