Thursday, March 19, 2015

Support 8590 If breaks, May Test 8450

Dear All,

The US central bank removed a reference to being "patient" on rates from its policy statement, opening the door wider for a hike in the next couple of months while sounding a cautious note on the health of the economic recovery. Given the developments, analysts feel that the US Federal Reserve could delay interest rate hike beyond June. Among the emerging markets (EMs), India is placed relatively better to weather the interest rate hike related storm, they say.

However Nifty fell down for second straight session and closed near support of 8,600.

Banking shares were under pressure, falling by upto 4% in late afternoon trade and erasing their entire morning gains.

"This fall in index has completely engulfed the rebound of last three sessions, which indicates further fall in the coming sessions. And, we are still upholding our downside target of 8475 in Nifty. Considering the market volatility, traders should maintain extra caution and avoid overleveraging at current levels. Among the sectors indices, PSU banking looks weakest, followed by energy, realty and metal so one can consider stocks from these pivots for fresh shorts," said Jayant Manglik, President-retail distribution, Religare Securities.

>>> Nifty Hourly <<<

>>> Click the chart to see on full screen <<<

It was an unexpected Sell off in the afternoon trade. Nifty ended in deep red. Now 8613 and 8590 looks very important, if breaks, then fall to continue till 8450 also.

We are advising a Long call on nifty till Yesterday - We had a lot of break out on chart, both on Price and RSI front, Suddenly market fell down even after a positive Fed decision. Hence let us see what and where it went wrong technically.

>>> Click the chart to see on full screen <<<

A false break out for sub wave (4) as a-b-c, today both price and RSI changed direction towards a negative side. If all the given support level breaks then fall to continue on weekend day of friday.

>>> Bank Nifty Hourly <<<

>>> Click the chart to see on full screen <<<

18680 Support must hold for an U turn, Else if breaks, Fall to continue as mentioned on chart.

>>> STAR <<<

>>> Click the chart to see on full screen <<<

STAR in its final Leg of rally completed today @ 1198 as 1-5 Wave upmove rally as given on chart. A Doji reveals a cautious tone. If 1198 - Unable to cross above, Get ready for a Free fall. Just Sell Sell and Sell Only.