Nifty opened higher but bulls failed to utilize that opportunity to move higher. Bulls failure mainly because major trend is down and downward gap between 10850-10830 acting as stiff resistance. Smart traders and investors gave more importance in Profit booking and entering fresh short selling at opening highs. Thats why market slipped in second half of the day to 10726 and closed at 10741 just near supporting trendline. One gap down opening today can breakdown this supporting trendline easily and we can witness more selling in market. Banknifty needs to close below 26300 today to breakdown key supporting trendline. As today is last day of the Week, hence, today's closing levels are very important to decide next week's trend. Sectoral indices, METALS, IT, FMCG, MIDCAP, SMALL CAP facing selling off and likely to continue in downside today also. Next week fno settlement so we may see high volatility from today onward. No change in major downtrend. As mentioned in last update, Pharma stocks facing profit booking. Overall sentiment turned into SELL ON RALLY Mode. As far as possible, get out of losing long positions. Best strategy would be Keep reducing long positions and STAY IN CASH.
10697-10687 next key support for nifty.
Key resistance 10785/10895.