Bears may tighten the grip

The market witnessed heavy selling with the Sensex losing 345 points, or 0.98 per cent, to 34,812.99. The Nifty fell 103 points, or 0.97 per cent to 10,482.20. The BSE Mid-Cap Index fell 0.91 per cent and Small-Cap 0.83 per cent, both outperforming the Sensex.

Among the sectoral indices on the BSE, Auto (down 2.31 per cent ), Oil & Gas (-1.94 per cent) and Power (-1.86 per cent) underperformed the Sensex. Consumer Durables was up 1.38 per cent.

Technical view

Jay Thakkar, head-technical & derivatives research and AVP-equity research, Anand Rathi Shares & Stock Brokers, said: The Nifty?seems to have completed initial rise from the way down i.e. from 10,300 levels. Now, a retracement of the entire rise from 10,030 to 10,645 is expected and a minimum of 38.2 per cent retracement levels comes to 10,400 and below those 10,325 levels, which is 50 per cent retracement levels. The resistance on the upside comes to 10,550 levels.

“The Sen-sex?seems to have completed a five waves rising structure and it too seems to have started retracement of the same. A minimum of 38.2 per cent retracement comes to 34,524 and below that 34,296, which is 50 per cent retracement level. On the upside, 35,150 is an immediate resistance and above those 35,300 levels.”

Market view

Mustafa Nadeem, CEO, Epic Research, said:Nifty forms a bearish engulfing pattern, indicating a short-term reversal placed on higher levels of 10,600-10,620. A closing was seen below the trading range of previous few sessions, indicating a violation of short-term supports and bears grip may further tighten...Resistance is now clearly visible in the range of 10,600 and further, if the pattern is to be believed we may see four digits in the coming month. We suggest cautiousness and approach with a sell on advances as a strategy in short-term as we may see further weakness coming in.