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What is the story about?
The 200-DMA has now become the line in sand for the Nifty. Even if the index has recovered 250 points from the lows of the day, the conviction at any rebound is still lacking and that is clearly evident from Wednesday's price action.
25,141 to 24,919 back to 25,300 and close at 25,150, all in a day's play for the Nifty. The moment the Nifty recovered towards the 25,300 mark, selling emerged yet again, and despite closing off the day's low, it closed off the day's high as well, nearly at the same level at which it began trading.
Wednesday's market move has also made one thing clear, even the sacrosanct 200-Day Moving Average is not safe for now. However, the 25,000 level becomes the most critical level to defend on the downside. A break below that could well open the doors back towards the September 30 swing low of 24,587 from where the Nifty began its move towards record high levels.
The sentiment around the market has been such that even half decent earnings have been punished by the street. Thursday's trading session would probably be the heaviest in terms of result reactions as well as earnings that will be reported.
Earnings reactions on Thursday will come from stocks like Eternal, Dr. Reddy's, Canara HSBC Life, EPack PreFab, HPCL, KEI Industries, UTI AMC, among other broader market names.
Thursday's session will see stocks like Aditya Birla Sun Life AMC, Coforge, Cyient, DLF, Indian Bank, Premier Energies, Zee Entertainment, V-Mart Retail, Zensar Tech among other companies report their results.
Rajesh Bhosale of Angel One believes that the Nifty upside remains capped resulting in a "spinning bottom" formation on the charts and hence they advice caution. In the absence of a clear bullish reversal signal, further downside cannot be ruled out with the 50 Week Exponential Moving Average (WEMA) around 24,900 - 24,800 acting as an immediate support. Wednesday's high of 25,300 remains a stiff hurdle.
Nagaraj Shetti of HDFC Securities said that the underlying market trend remains week with the Nifty finding it difficult to sustain above the critical support of 25,150. Further weakness below 24,900 could possibly drag the Nifty to 24,500 in the near-term. However, a sustained upmove above 25,200 could result in further upside.
The Nifty Bank was one index that had capped the Nifty downside for a better part of the last two weeks. However, after hitting the 60,000 mark last week, the index has also collapsed, taking the Nifty down with it. As of Wednesday's close, the index is now down 1,600 points below the record high level of 60,437 and has drifted further away from the crucial support level of 59,500 and the 59,000 mark.
"In the follow-up session, the index decisively cut below its 50-day SMA, suggesting bears are gaining control. However, a positive factor is that the index has managed to hold the crucial support of 59,700 on the chart. A bullish stance should be adopted only if the index reclaims 59,800(on closing basis); until then, volatility may persist with a bearish bias," Vatsal Bhuva of LKP Securities said.
25,141 to 24,919 back to 25,300 and close at 25,150, all in a day's play for the Nifty. The moment the Nifty recovered towards the 25,300 mark, selling emerged yet again, and despite closing off the day's low, it closed off the day's high as well, nearly at the same level at which it began trading.
Wednesday's market move has also made one thing clear, even the sacrosanct 200-Day Moving Average is not safe for now. However, the 25,000 level becomes the most critical level to defend on the downside. A break below that could well open the doors back towards the September 30 swing low of 24,587 from where the Nifty began its move towards record high levels.
The sentiment around the market has been such that even half decent earnings have been punished by the street. Thursday's trading session would probably be the heaviest in terms of result reactions as well as earnings that will be reported.
Earnings reactions on Thursday will come from stocks like Eternal, Dr. Reddy's, Canara HSBC Life, EPack PreFab, HPCL, KEI Industries, UTI AMC, among other broader market names.
Thursday's session will see stocks like Aditya Birla Sun Life AMC, Coforge, Cyient, DLF, Indian Bank, Premier Energies, Zee Entertainment, V-Mart Retail, Zensar Tech among other companies report their results.
Rajesh Bhosale of Angel One believes that the Nifty upside remains capped resulting in a "spinning bottom" formation on the charts and hence they advice caution. In the absence of a clear bullish reversal signal, further downside cannot be ruled out with the 50 Week Exponential Moving Average (WEMA) around 24,900 - 24,800 acting as an immediate support. Wednesday's high of 25,300 remains a stiff hurdle.
Nagaraj Shetti of HDFC Securities said that the underlying market trend remains week with the Nifty finding it difficult to sustain above the critical support of 25,150. Further weakness below 24,900 could possibly drag the Nifty to 24,500 in the near-term. However, a sustained upmove above 25,200 could result in further upside.
The Nifty Bank was one index that had capped the Nifty downside for a better part of the last two weeks. However, after hitting the 60,000 mark last week, the index has also collapsed, taking the Nifty down with it. As of Wednesday's close, the index is now down 1,600 points below the record high level of 60,437 and has drifted further away from the crucial support level of 59,500 and the 59,000 mark.
"In the follow-up session, the index decisively cut below its 50-day SMA, suggesting bears are gaining control. However, a positive factor is that the index has managed to hold the crucial support of 59,700 on the chart. A bullish stance should be adopted only if the index reclaims 59,800(on closing basis); until then, volatility may persist with a bearish bias," Vatsal Bhuva of LKP Securities said.
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