The domestic stock market on Tuesday continued to display a total lack of conviction at higher levels.
Nifty has been displaying a tentative behavior. This feature of the market is likely to persist for some more time. Unaccompanied by any major move, volatility too declined as India Volatility Index came off by another 2.80 percent to 31.4700. The market will continue to witness sporadic bounces. It will turn vulnerable at higher levels.
The markets may see a modestly positive start to the session. The 9,075 and 9,135 levels will act as important resistance, while supports will come in at 8,985 and 8,900 levels.
The index faces resistance at the 50-DMA, which currently stands at 9,028. The market is set to see some positive moves, but in all likelihood, it may be temporary and limited in its extent. Nifty will remain vulnerable at higher levels and each up-move, if any, will face resistance and selling pressure at higher levels. The action is likely to remain concentrated in a few pockets and there may be sector- and stock-specific outperformance. We recommend staying very stock-specific while approach ..
Nifty Bank (17440) Slide to 17368 is a possibility’ the Nifty Bank has resistance at 18831 and slide to the recent low of 16116 is a possibility too’ the Nifty Bank is sluggish and there exists a resistance at 17830 and support exists at 16116 zones…