Indian Stock Market would open gap positive. Some sharp short covering can’t be ruled out after 3 days sharp fall but traders should short at every positive movement in the market.
Indian Stock Market is still in negative zone and further downfall is intact. Investors should hold cash at this point of time. Long positions should not be initiated until the first sign of strength is seen in the market.
Technically, few opening gaps has been seen in last 3 days and in ideal situation, market or any stock fills up the gap in some days hence some short covering could be seen.
FIIs were net sellers of whooping Rs.5275.40 crores whereas DIIs were net buyers of Rs.4097.83 crores in last trading session.
Nifty would see strong support at 7725-7630-7576-7500 whereas strong resistance would be seen at 7960-8005-8060-8105 levels.
NSE Nifty: (7809) The support for the Nifty is 7725-7630-7576-7500 and the resistance to the up move is at 7960-8005-8060-8105 levels.
NSE BankNifty: (16812) The support for BankNifty is at 16560-16300-16157-15980 and the resistance to the up move is at 16970-17280-17390-17520 levels.
BSE Sensex: (25742) The support for the Sensex is at 25526-25232-25000-24892 and the resistance to the up move is at 26000-26380-26560-26730 levels.