Entering the final day of trade for the week, SGX Nifty was down in the red, falling more than 200 points, suggesting that Dalal Street might still be in the grip of bears.
Bulls attempted to return to Dalal Street as domestic stock markets ended their 4-day losing streak on Thursday. S&P BSE Sensex rose 427 points or 0.78% at 55,320 while the NSE Nifty 50 index gained 121 points or 0.74% to settle at 16,478. India VIX, the volatility gauge was seen moving further down but is still above 19 levels. Now, entering the final day of trade for the week, SGX Nifty was down in the red, falling more than 200 points, suggesting that Dalal Street might still be in the grip of bears. Global cues were also weak with Wall Street equity indices having closed with losses overnight. Asian stock markets mirrored the fall.
Global Watch: On Wall Street, NASDAQ index ended 2.75% lower, followed by a fall in S&P 500 and the Dow Jones index. Asian stock markets were mirroring the up-move with Hang Seng, Nikkei 225, TOPIX, KOSPI, and KOSDAQ all down with losses. Shanghai Composite was up with marginal gains.
What do the charts say: With yesterday’s gains, a long bull candle was formed on the daily Nifty chart at the lows, which indicates a formation of a bullish Piercing Line type candle pattern, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “The Piercing line pattern is a bullish reversal pattern and normally formed after the declines. Hence, one may expect further upside in the short term,” he added.
Levels watch out for: “The Nifty may find support around 16240 levels while on the upside 16600 may act as an immediate hurdle,” said Palak Kothari, Research Associate, Choice Broking. “Overall, Nifty is looking bullish for the next trading session with the support of 16240 levels it can show 16600-16680 levels,” Kothari added. Nagaraj Shetti believes the Nifty forming bullish candlestick pattern and closing above the hurdle of 16400 levels indicate further upside towards 16700-16800 levels in the near term. “A sustainable move above 16500 could open strong upside momentum. Immediate support is placed at 16380 levels,” he ...