TECHNICAL CHECK ON MARKETS AND INDICES
1. Technically, it is discouraging to note that the market has given up a lot of the gains of last Friday. Infact by not crossing even the high of Friday the market is giving the signal that follow-up is missing and it could have just been a one-day wonder.
2. We have anyway been working with the thesis that the upside is limited. Nifty closed right at the 200-EMA. This is the average for which the battle is on between the bulls and the bears.
3. The pattern formed is bearish and none of the technical indicators are positively placed. However, with Nifty right at the major support of 16750-800 one cant take an aggressive bearish stance here. A close below the same leads to the next round of weakness.
4. On the upside the 17040 area and 17200 are still the major resistance levels to work with.
5. Some of the stronger sectors like Auto and FMCG have come under the hammer.
6. Global markets remain in a difficult place despite the rallies from time to time.
7. USD-INR has been sustaining above the level of 80, which is not healthy.
8. Summary View: Nifty stays in the broad range of 16750-17200 with a bearish bias. We are currently at the lower end. Rallies might not sustain.