Nifty opened higher today, sold off during the trading session, followed by recovering some of the losses: that’s today’s price action in a nutshell. Finally the index closed at 11,588 adding nearly 36 points to the kitty.
How does it look in a longer term perspective? Well, intermediate trend is still down with important resistances looming at 10600, 11660 till 11770 regions and forays into higher levels are expected to lock horns with heavy supply in these regions. More importantly, prices need time-wise consolidation & right now we do not see lot of evidences in favor of a bullish case.
That said, we do find certain pockets of out-performances mainly in Insurance Cos & AMC stocks. The likes of HDFC Life, HDFC AMC & SBI Life are looking good in medium term perspective but apart from this, overall market breadth remains weak & supports are likely to be tested in near future. At this point of time if 11500 fails to hold, some more supply could be seen in the index.
