Nifty Close above 12100 level and consolidated for the second day in a row to form a bearish candle.
Supreme court ruling on telecom players instructing them to pay dues by March 17th will impact the asset quality of banks having decent exposure in the sector. Banks stocks will be under pressure given high inflation and RBI being unlikely to cut rates in the near term. Indian market is impacted due to fall in global market due to increase in coronavirus cases.
Nifty formed a Doji candle on a weekly scale while a Bearish candle on a daily chart which indicates a tuff of war between bull and bears with some supply at higher zones. As long as Nifty holds above 12000 level, we may see ongoing optimism with a consolidative move towards 12272 level.
Strength in Nifty is not expected unless it registers a strong close above 12272 level. Meanwhile, the ideal target on downside seems to be around 11990 level.
For time being traders are advised to avoid long positions unless a strong close is witnessed above 12272 level whereas intraday traders can consider going short if Nifty trades below 12092 level for more than 30 minutes and look for a target of 11990.
It formed a Bearish candle on daily as well as on the weekly scale and drifted below its 50 DEMA. It underperformed the Nifty index and got stuck in a broader trading range with a limited upside.
All the sectoral indices ended lower, with PSU Bank Index down 2 percent followed by auto, FMCG, metal, energy and IT. Midcap index down nearly 1 percent, while Smallcap index fell 0.4 percent.