Nifty continued its drop for the third straight session today by closing at 8600/06 spot levels. We had been writing and discussing that the indice could reverse soon and a minimum 60% correction will bring it to 8500 levels in the coming sessions. It is strongly recommended to remain short and also add further positions on intraday rallies. The indice has produced an engulfing bearish candlestick pattern on the weekly chart as well, which gives further confirmation of a continued drop in the sessions to come by. Nifty remains a strong candidate to be sold on rallies.
The USDINR bullish is still awaited as the pair trades between 62.20/40 spot levels today. There is no change in structure and USDINR still remains buy on dips. Immediate support is at 62.00 spot, followed by 61.30 and lower while resistance is seen at 62.80 and higher respectively. The upside potential remains up to 64.20 spot levels in this trade cycle.
The Bank Index closed at -1.56%, Auto at -1.25%, Energy and FMCG remained almost flat, Finance at -0.96% and IT was down by over 2%.