On Friday, the market opened lower and managed to sustain above the level of 5230, which is our intermediate support.
However, it failed to reach 5290, which was a weekly lowest level of the previous week. It was an indication of weakness
on Friday and today, it may lead to further weakness on the back of weak global cues.
Below the level of 5230, the market will enter into medium term weakness and the strategy should be to reduce trading
long positions at current and on pull back at resistance levels. The world markets are also diverging "negatively", which is
an indication of shift in the current trend and time wise correction in the coming days. Today, in case the market sustains
below the level of 5230 in the second half of the trading session, then the market may fall to the level 5125 with a minor
support at 5180. From the level of 5125/17130, we may expect temporary recovery/pull back but in case if it fails to sustain
around the same, then the sell off may continue to the level of 5050/5040 (16850).
During the week, in case the market fails to trade above 5200 and remains below 5125 then we should be ready to see
the level of 4950/4850 (16500/16230) in the near-term.
For traders, our advice is to reduce the trading long positions as the time wise correction may lead to lot of uncertainties.
For investors our advice is to invest gradually at each major supports 5130, 5050 and 4950 with a medium to long-term
view in mind in front line stocks. The reason behind the same is the broader trend of the market is still strong and may
help the market to bounce back from lower levels
