We were expecting some bullish move as per technicals, but because of great fall in the US market in the last hour of trading(nearly 8%), there was lot of fear among our people and made a big gap down in first few minutes of trading.
Market had touched a new low of 3200 and bounced back to 3311 immediately. RBI announcement of CRR cut by 150 bps had taken Nifty only till 3396, and from there it was trading in range between 3300 - 3367.
As the IIP data has been out and much below expectation, again market will go below 3300 and continue downward. If Nifty failed to take support at todays low of 3200, then further panic will be seen. On the other side if it takes support at that level, then market will be trading in the range of 3225 - 3300.
Still Inflation data has to come and if it is in line with the markets expectation, then market may go to its previous trading range (3300-3367).
One can see a big recovery only if nifty crosses 3367 and trade above that point for 5 minutes.
Any how, Unexpected shift from Technicals, will make everyone blind and will make us to move in unknown direction.
Friday, October 10
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