Market opened at a normal pace and maintained expected upward momentum but over-reacted to political news and got shot down from an intraday high of 38550 +/- 50 points. On lower end, market broke our predicted intraday resistance of 38100 point due to panic selling but second intraday support at 37500 +/- 100 points was tested twice and well honored. Overall, market closed on an indecisive ending with depressed prices offering an opportunity to short-sellers for squaring their positions. Volumes made another historic high once again - a sign of good omen. Panic sellers lost the ground while those watching patiently for second support got space to accumulate at dip. End of the day, market rewards patience.
Looking forward, we expect market to make gains once again on the back of political noise settlement and our target of first resistance at 38900 +/- 100 points remains intact for upside.
In event of downside, support is expected at 37700 - 37300 +/- 100 points.
Individuals turned out to be biggest panic sellers, showing high value of gross buy/sell but very low net value. While institutions maintained their calm and rode through the turbulence.
Wish you a very happy and profitable trading!
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