Update on Technical Perspective
1. Nifty trading mostly at gap support of 16350.
2. Bank nifty also for 2nd consecutive day reversed from 34800 levels and defending gap supports. Major banking heavyweights have stopped falling and creating positive divergence in lower timeframes. Bank nifty looks much stronger than Nifty in terms of relative strength.
3. Breadth of the market is also very much oversold and suggesting that market should stabilize in coming 4 -5 trading sessions.
4. It seems that sectors like Cement & Realty seems to have created a near term bottom.
5. Sectors which continue to look stable and exhibiting strength in this weak market are Energy, Autos, Fertilizers, Capital goods /Industrials and PSU banks.
6. Close above 16500 on Nifty now should be first indication of Nifty moving towards 17000.