A bearish engulfing pattern with largest one day loss butchers the bulls as Nifty slides below all crucial moving averages it was holding from last December. A close below 9800 confirms that damage can be much sever in coming days as no breathing space is left for short term bulls.
A bearish engulfing pattern is seen which has engulfed the previous sessions some minor rebound while a close below 9800 is signalling more bearishness in market. On Immediate basis the support for market is seen at 9700 which in case holds may provide a short term relief coupled with rollover data which is way weaker as compared to last few months with a day more to go. We see short term support for market coming at 9540 – 9600 which may give some meaningful pause. On higher side point of inflection is seen at 9800 – 9840.
As Far as OI data is concerned we may see much weaker expiry this month which may set the bearish tone for October series.
We are cautious with sell on rise approach and any rise shall be used for the same. Some defensive play is observed in FMCG and Infosys but that may as well evaporate given the strength of bears on overall market.
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