epicresearchindore
Epic Research
It has been a bad day for the market. Yesterday hopes were raised with the feeble rally to 5275 but, today global markets have not been supportive and Nifty has spent most of its last one hour below 5230, said Udayan Mukherjee, Managing Editor of CNBC-TV18.
The Nifty is showing first signs of breaking down from the 3-4 day trading range which was circling around the 5250 mark and lots of big clusters like banking, infrastructure, and metals have led the slide today. European markets also don't look particularly confident going into the ECB meeting tomorrow.
Largecap stocks like Axis Bank too fell 5% today. It has been a largecap led sell off and the FII numbers are not expected to be great. Maybe some nervousness is creeping in as realisation seeps in that tomorrow, there won't be great news from the ECB. At least for the next 10 days, the markets will have to wait.
So European markets are a bit edgy. Infrastructure and metal stocks have got pounded again and the 5% cut on Axis Bank certainly seems to have unnerved the Bank Nifty.
Overall, all is not too good. The repercussions on the midcap side have not seen off the market. The fact that the three leading sectors in the market in the largecap space have led the slide today is not good.
Even if there is something from the ECB, the slide may continue because the market has got stuck in a range for the last four days. It is trading in a very narrow range of 5240 to about 5300 and today is the first sign of breaking from that range. Although, 5230-5240 is not a big support level or anything like that, but just below that around 5200, there is a significant level of support. If that gets taken out tomorrow after the ECB news or around that then we could be headed lower.
In the context of that narrow range that the Nifty had formed, there is still some time to try and recover and get back to that 5250 level but the way things have shaped up, it is threatening to breakdown from that range.
The Nifty is showing first signs of breaking down from the 3-4 day trading range which was circling around the 5250 mark and lots of big clusters like banking, infrastructure, and metals have led the slide today. European markets also don't look particularly confident going into the ECB meeting tomorrow.
Largecap stocks like Axis Bank too fell 5% today. It has been a largecap led sell off and the FII numbers are not expected to be great. Maybe some nervousness is creeping in as realisation seeps in that tomorrow, there won't be great news from the ECB. At least for the next 10 days, the markets will have to wait.
So European markets are a bit edgy. Infrastructure and metal stocks have got pounded again and the 5% cut on Axis Bank certainly seems to have unnerved the Bank Nifty.
Overall, all is not too good. The repercussions on the midcap side have not seen off the market. The fact that the three leading sectors in the market in the largecap space have led the slide today is not good.
Even if there is something from the ECB, the slide may continue because the market has got stuck in a range for the last four days. It is trading in a very narrow range of 5240 to about 5300 and today is the first sign of breaking from that range. Although, 5230-5240 is not a big support level or anything like that, but just below that around 5200, there is a significant level of support. If that gets taken out tomorrow after the ECB news or around that then we could be headed lower.
In the context of that narrow range that the Nifty had formed, there is still some time to try and recover and get back to that 5250 level but the way things have shaped up, it is threatening to breakdown from that range.