Tuesday, January 22, 2008

Technical view: Relief rally expected in next few days

The 30 share index Sensex witnessed the biggest ever fall in history today. The index opened with a negative gap of 94 points and continued to trade weak throughout the day. Relentless selling pressure was seen among the traders in frontline stocks.

BSE Sensex tumbled 1,408.35 points, or 7.41%, to close at 17,605.35 while the broad-based NSE Nifty closed at 5,208.80, down 496.5 points, or 8.70%.

Commenting on the markets, Suresh Iyer, technical analyst at Asit C Mehta, said, ``Global clues initiated the fall in an early trade, than consecutive drop in the market was due to margin call request. Literally there were no buyers in the markets. The weekly charts showed that worst is not yet over. Monthly charts were also suggesting sell signals.``

However, Iyer expects some relief rally in the markets over next couple of days. He advised investors, who continued to be bullish on Indian growth story and willing to invest in the market, to put only 10% of total amount.

Nifty has resistance at 5,281, 5,400 and 5,538. If Nifty closes below 5,178 and 5,027 fresh downtrend will start. The support levels of Nifty are placed at 4,895, 4,740 and 4,631.

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