Market Technical View

Buying Opportunity

The Nifty lost 103 points over the day to close at 5005. A
corrective day at the markets yesterday as they opened gapdown
and thereafter kept making lower lows for the rest of the
trading session and closed above the psychological mark of
5000. The fall is not completely out-of-the-blue as the markets
have this ability to do strange things on an F&O expiry. A bearish
pattern was spotted on the hourly chart (See Exhibit 1 on Page
2) whose target of 4990 was done within a couple of hours. A
100-150 Nifty point sell-off can happen at any point of time and is
too little to be given importance given the extent of the recent
rise. The oscillators, which have been overbought, came up with
a sell trigger yesterday and are likely have a negative effect for
one more day. From a bigger picture perspective the fall is
temporary in nature and therefore is unlikely to sustain beyond a
few days. The level of 16600/4900 are the crucial supports to
watch out for. Overall, after the 2000-point rally in the last couple
of weeks the current decline can only be understood as a routine
retracement and hence provides a buying opportunity.

Note: More intra-day opportunities will be provided
live during the market hours

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