Nifty has pushed just above the fibonacci 50% resistance today by closing at 8714 spot levels. The indice has made an intraday high at 8730 levels, which is also extension of initial rally that had begun fro 8260 spot levels earlier. It remains still possible for Nifty to correct lower into 8430/40 levels before rallying further. In either case, the indice remains a strong candidate to sell into strength from here on. The 8800/8900 levels remains of particular interest for bears to regain control. A drop first and then rally into 8800/8900 resistance would complete the counter trend structure perfect.
The USDINR remained subdued today and confined between 62.21 and 62.35 spot levels. The pair is expected to drift sideways for a while before it breaks higher again. Immediate support is seen at 61.90/62.00 spot levels, followed by 61.30 and resistance is seen at 62.60/80, 63.10 and higher respectively. Holding long positions and buying further on dips is a preferred trading strategy for now.
Bank Nifty closed lower at -0.29%, Auto closed higher by half a per cent, Energy at 1.57%, Finance closed at -0.56%, FMCG at 1.57% and IT at 1.88%
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