Nifty makes a Tweezer bottom formation on the daily chart as it was a mirror image of the previous trading session. Nifty is trading above its crucial long term support of 200 days EMA. The EMA is placed at 11297 and we have managed to stay above it for two days despite both sessions marking selling pressure from higher levels. The breadth was weak as most indices saw selling barring FMCG, IT and Media. The PSU index was down 3.42% hence the weakest in the last few months is being further seeing shorting pressure.
The global cues were seen largely positive with US equity indices climbing to record highs. The domestic markets on the flip side were seen negative and within the previous range as it is awaiting results of giants like HDFC Life, SBI Life, and HUL. There are many big companies results that are awaited this week and the market will be discounting the same.
Markets may seem to be oversold in the short term and there can be slight chances of a bounce-back though we are still having caution as it needs to surpass 11690 to resume its uptrend.