The market opened above an important support level 4670 but it failed to sustain initial gains in the second half and
collapsed towards the end to 4550/15300 levels without any recovery. Currently, the market is down nearly 15% from its
recent highest level and may extend its weakness on the back of weak global cues. However, if we go through Dollar
Index chart then we can say that it is in corrective phase or under bearish consolidation and one more fall is imminent
that may be approximately 10% or more. If it happens then the rupee is certainly going to appreciate and will have a
positive impact on equity.
In brief, for investors it will be an opportunity to buy index based stocks at each major supports with a long term view
in mind. For traders our advice is to stay away from catching a falling knife and rather sell on recoveries at major
resistance with minimal stop losses. While looking at major oscillator RSI we can say that sellers are tightening their grip
and in case the market sustains below 4550/15300 levels in the second half of the trading session then the market could
fall to 4350/14650 levels with a minor support at 4430/14900 level.
On the higher side 4680/15820 and 4730/15970 may act as a major resistance for the market on a broader basis. However,
initially 4615/15570 is the hurdle for bulls to move upward.
