Last time we estimated a big downfall in the month of October and believed that IT Sector might stay in pressure as the results of Tata Elxsi disappointed and Number of TCS may also disappoint.
Although, There was no downfall today. the top companies of IT Sector behaved in the manner as expected. TCS , Mindtree , NIIT and HCL Tech ended on the negative note and other companies fell initially but recovered and ended with minor gains.
However one major thing to see is all the major global markets including Nikkei, Dow Jones, other Index were in Dark Red and even SGX NIfty was in -200 (although I do not believe SGX Nifty is directly related to Nifty but being part of the global market, even it depicts the sentiment of the market). Our Nifty did not showed any Red Colour.
FII Data suggest that they have net purchased 7.9K Index and 10.2K stock .
1. Consumer stood at 3.77 per cent as against 3.69 per cent in the previous month. This rise in was driven by higher prices of food and fuel along with weakness in the rupee. The retail figure was lower than economists' estimates of 4% and was within the comfort zone of RBI. (Good for Market).
2. Good result of Nifty 50 Company - HUL.
3. Lined up result of Nifty 50 Company in coming week- Infy , Reliance , HeroMotoCorp, HDFC Bank
The last 3 day candles have created a reversal pattern in the form of .
With a rise of Today, FII has also added Longs in Shares and Indexes. We can expect a small pullback rally over here. HUL has result has been great, which will have a positive impact on the market after poor numbers from TCS . In The coming week result of top Nifty 50 companies are there, which will shape the market.
In the process to up,There has been 2 Gaps created in the past downfall and crossed 2 Fibo support (Mentioned Below) which will stop the market from going up.
Resistance 1 - Gap 1 - 10520-10550
Resistance 2 - Fibo Resistance 38.2 - 10650
Resistance 3 - Gap 2 - 10750-10850
Resistance 4 - Fibo Resistance 0.5 - 10860
The Above 4 levels are going to act as major resistance. Even after being optimistic, I do not feel market will be able to cross Resistance 3.
Please note Pullback are short term and short lived. Thus, I personally do not prefer trading the pullbacks. However these pullbacks gives good level to again short the market.
Please also note : FII even after covering have 89K Shorts. The fall can be deffer-ed but is certain to come until FII decide to cut their shorts in losses. (which never happen :P)
The last time Nifty/Bank Nifty rose 300/800 points, it witnessed a bigger Gap Down the next day. I do not expect the same on Monday. Market might open Flat.
These are just my thoughts, and my view to the things going around. I hope it Helps.
All counter views welcomed if they intend a fruitful discussion. And If Warren Buffet says he still learns, who are we to say or believe that we know all. Lets learn together and Earn together.
Technically someone can call it ISLAND REVERSAL Pattern as well.
All washed off in 3 Hours Fall!
Hope I was able to help you guys. :)
"The Above 4 levels are going to act as major resistance. Even after being optimistic, I do not feel market will be able to cross Resistance 3."
Nifty Preached and Didnt Breached. :)
Morning star first candle need to be a negative followed by gap down opening. Here after a consolidation it gave a gap up opening which can nkt be counted.
This is my view
Yes if a gap up opening is seen on monday then it will be positive or else if fridays high is not crossed with gap down then lvl of 10000 is sure
10K seems near. Upside might be limited.