We had discussed early this week that March 13, 2015 could be the day when Nifty meets resistance at 8950 spot and that could trigger a reversal. Today, the counter faces resistance at 8840/50 levels (back side of trend line support) and reversed. It has been a 200 point fall from todays highs registered at 8840/50 levels and close at 8647 spot. There is no change in the trade setup, Nifty remains a clear candidate of selling on rallies; both intraday and interday. 8400 and subsequently 8000 levels on cards now. A word of caution: “Nifty may still produce counter trend rallies, don’t get trapped there, Go Short!”
On the other side USDINR inched higher to 63.05 spot levels before pulling back. The structure confirms that USDINR remains a Buy On Dips candidate, and upside extensions are pointing towards at least 64.65 and 65+ spot levels. Intraday and Interday dips are very much possible but bulls are poised to remain in control till prices stay above 61.30 spot.
All sectorial indices were down in the Red with FMCG leading the pack over -2.0%, Bank Nifty close to -2.0%, Auto, Energy and Finance at about -1.5%, and Energy just over a per cent.
Have A Great Day Ahead!