The 3 day rally was interrupted as Nifty failed to move past 5950. The global cues were also not helpful as most of the Asian as well as European markets were flat or negative. Banking led the decline as after a weak-ish rebound of past 3 days almost all banking stocks resumed their southward journey. SBI slipped below 2700 while other major banking losers were Uco Bank, Dena Bank, Indusind Bank, Can bank, Allahabad Bank and Indian bank. Heavyweights like RIL, Bharti, Tata Steel and IT majors did try to positively influence the indices but failed to provide enough momentum. OMCs also bounced back but were unable to hold on to all intraday gains. Some of the prominent gainers were KS Oils, Patni, IGL, HPCL, BPCL, PTC, Ispat, TCS, Dabur and Apollo tyres. Losers included KFA, Hero Honda, DLF, IB Real, SCI, IFCI, Jet, Titan, Escorts, HDIL, SKumars and Punj Lloyd. The new listing MOIL opened on a strong note but found sustained selling pressure throughout the session and gave up more than Rs100 from its intraday peak. Overall breadth was negative.
Nifty failed to move past 5940-50 and slipped below 5900. It was a typical 3 day rebound formation followed by continuation of downtrend again. This pattern was more prominent in almost all banking counters that continue to show momentum on the downside. 5945-5960 now becomes an important resistance to tackle and a sustained move past this zone would be needed to create some upside momentum. Nifty found support just around 5870 but might slip to around 5820-30. IT heavyweights have emerged as the safe bets in current controversial scenario and are providing some support to the indices. Both TCS and Infosys have bullish patterns and could see more upside in coming sessions though it may not be a one-sided kind of move. IT heavyweights alongwith Tata Steel, RIL, Bhel, L&T and Bharti remain buy on dips candidates while banks and financials alongwith Realty counters should be avoided as of now for buying purposes.
Nifty has support around 5865-70 and then around 5825-35 while fresh move is likely above 5950.
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