SURYADEV BANDARI INTRADAY TREND (June 13)
Yesterday Nifty moved entire day in congestion zone and reached make or break point. Below 10830 spot, we get 1st level of Breakdown and head down for 10720 target. On the upside 10850-10875 key resistance zone. Technical indicators suggesting a breakdown and big selloff ahead. Be prepare for that. Banknifty too moved in tight range at higher levels. Below 26500, we get 1st level of breakdown and from there sharp selloff possible till 26290 and 26150. Except Pharma Counter, other counters looks bearish at current levels. As expected IIP DATA AND INFLATION data quite contradicting. Rise in Inflation more disturbing factor for market now as it effects Profitability. Need to watch market reaction today. Today mostly market moves in one direction. Gap down opening would indicate market sentiment today and head to 10720 level. Avoid Bottom fishing. Selloff in Midcap and smallcap stocks likely to continue further. Large cap stocks also getting ready to follow up selling. Bulls be alert. Keep reducing long positions and STAY IN CASH. Market condition is like CALM BEFORE STORM. Taking precautionery actions only saves investors. Hence, keep strict stoploss to long positions and avoid fresh investment. Do not try to average lossing positions at current levels. As per Elliott Wave Perspective, wave 2 inner waves a-b-c are almost completed and Wave 3 down has to begin from current levels. we likely to see more severe selloff in coming sessions.
Next important cues for markets is U.S. Federal Reserve's Interest Rate decision outcome coming this Thursday. Any negative news can trigger heavy selling pressure. Major trend is down. Sell on Rally market.
10720/10620 next key supports for nifty.
Key resistance 10850-10875.
- SURYADEV BANDARI, RESEARCH ANALYST