Nifty has swung both sides today and closed flat at 8660 spot. The indice has produced a doji candlestick pattern today, indicating a potential reversal tomorrow. Please note that Nifty has stalled at fibonacci 0.50 resistance around 8692/93 spot today, and a drop from current level would bring 8400/30 levels into picture. What ever the case, the indice is set to face stiff resistance around 8800/8900 levels if prices manage to reach there and selling into rallies remain a preferred trading strategy from here on. Nifty might be unfolding a into a deeper correction. Look to sell around 8800 levels. Watch out for a Nifty reversal in the sessions to follow.
The USDINR hit 62.40 spot levels today before pulling back lower again. The pair is trading around 62.26 spot levels at the moment and is expected to resume rally again. It is good to hold long positions, risk remains around 62.00 spot for now. Resistance is seen at 62.65 levels, followed by 62.85 and 63.10 respectively. Buying on dips remains a preferred trading strategy for now. The pair should remain subdued between 62.00/10 and 62.50/60 levels in the following trading sessions before breaking out.
The sectorial indices remained mixed today with Bank Nifty closing lower at -0.73%, Auto remained flat, Energy was up 0.77%, Finance was down -0.67%, FMCG up at 0.68% and IT almost flat.
Have a Great Day Ahead!