Nifty Continues The Losing Streak

Last day of January series proved to be yet another bad one for bulls as Nifty lost over 80 points. January series saw Nifty lose around 500 points as the sentiments turned extremely negative in the short term. This has come in a global back drop that remains neutral to bullish. In fact, Dow made almost 30 months high yesterday as it crossed 12000. Even today most of the global markets were trading higher but local markets had no such luck as despite a positive start, Nifty continued to lose ground on long unwinding. Most heavyweights witnessed selling on almost across the board weakness. DLF, JSW Steel, Sterlite, M&M, Ranbaxy, HUL, Bharti, Bhel and ICICI bank were some of the heavyweights that contributed to the falling indices. Some of the other prominent losers were Srei Infra, LITL, Core, Jindal Holding, Indian Info, IDBI, IVRCL, Tata Chem, Lupin, HCC, Century textiles, Bajaj Hind, Pantaloon, Yes Bank and Unitech. Cement heavyweights ACC and Ambuja as well as Tata Motors were some of the heavyweights that bucked the overall trend and finished with decent gains. Few others to post gains were TV18, BRFL, Nalco, Alok, Areva, Sesa Goa and TCS. 

Nifty made a new swing low at 5595 and has maintained the trend of lower lows and lower highs. The momentum remains with the bears as even on the last day of January series market could not attempt even a small technical rebound. More downside is seen in coming days and Nifty might find it difficult to scale 5750-60. Support is seen around 5520-5540 on weekly charts and some technical rebound could materialize from around these levels. Sector- wise it is difficult to point out the stronger ones but it looks probable that banking sector could see buying at lower levels. Some stocks that still qualify as buy on dips are Sesa Goa, SBI, Sterlite, ICICI bank, Alok, Axis, HDFC bank, RIL, Bharti, Cipla, Praj and Petronet LNG. BUY on Dips or on bad days is the key here as it would be imprudent to play trade momentum on the buy side as the momentum remains with the sellers.

Nifty now has immediate support around 5570 and then around 5520-35 while resistance is at 5680 and then 5740-50.