On a little larger perspective, we are expecting Nifty (Spot) (Closing Price : 14834.85) to remain range bound with an upper resistance zone of 15150 - 15200 levels
whereas down side support band is near 14450 - 14400 levels as one can clearly
observe here in Nifty (Spot) Daily chart. A range bound market is the one where
you will get stock specific moves rather than convincing Index moves. A gap up triggers
profit taking whereas gap down will help bears to cover preemptive short
positions.
On a short-term time frame, on the corrections, Nifty should
find support near 14775 (20 DMA) and 14660 (50 DMA) levels whereas 14984 will
act like a sticky resistance level. A move on either side will unfold next technical
levels, above 14984 mark a short covering rally will push Nifty towards 15150 –
15200 levels whereas breach of 14660 mark will unfold 14450 – 14400 levels.
Due to current uncertainty, Focus will be shifted back to
low beta sectors like FMCG, Pharma as well as Technology,where we observe fresh
OI build up last week. Banking & Financial Sector is bleeding and trading
into highly oversold levels. We may observe some more weakness and the sector
may put some more pressure in Index although shorts are not advisable here.