Markets are still above their crucial support levels: Nirmal Bang

BSEIndian markets fall as investors booked profit after a strong gain which pushed the Sensex below 17K and Nifty ends near 5K. Realty, telecom and metal stocks were the worst hit in today's session. The Sensex ended at 16,866 down 268 points. Nifty finished at 5,003 down 80 points after hitting a day's low of 4,991. Among the broader indices, the BSE Midcap Index fell 1.7% and Smallcap Index down 2.1%. All the sectoral indices were in the red barring FMCG. The market breadth was extremely discouraging. The Oct Nifty future ended with 9 points premium.

Markets corrected a bit on institutional profit booking witnessed in blue? chip front line stocks like Grasim, BhartiArtl, RCOM, SBI, Axis Bank and Hindalco which have great percentage weightage on the Sensex. The short? term trend could slightly get weaker in coming days if Nifty decisively trades below the 5K mark with good volumes. The intermediate trend still remains positive as markets has not given any negative divergence and are still holding very strong above their crucial support levels.

For tomorrow, Nifty has strong support at 4,980?4,960 levels from where buying could emerge and if this buying fails then markets could see a strong sell? off and nifty might test 4,905 or 4,815 very shortly. On the higher side resistance is placed at 5,060, unless we see a break above 5,060 fresh buying should be avoided.

STOCK IDEA:

1) ADHUNIK METALS (104) - Buy and hold, huge delivery based action happening, support exist at 95?92, if the stock maintains above 110 in the near term then expect a short? term target of 135.

2) GAIL (365) - Buy and hold with a stop? loss of 356 or 346, structure looks positive and if the stock manages to sustain above 372, then expect a sharp rally upto 400.

3) IRB (214) - The stock is showing some kind of accumulation happening in the range of 200?220 and is waiting for a fresh breakout to trigger above 220. Buy and hold with a strict stop? loss of 205 or 195, if the stock maintains above 220 with an average volume of 15 lac then expect a short term target of 240?255.

4) RELIANCE (2139) - Buy on dip with a strict stop? loss of 2110, if this level breaks then the next level could be 2080?2040. But if the stock holds firmly above 2150?2160 then see a target of 2190?2215.

NIFTY FUTURE DAILY CHART: Nifty future has closed near to its first support of 5,010, if tomorrow we see a break of this point then the next level to watch will be 4,960?4,850 as shown below. So markets are trading at a crucial level from where a fall is possible if 5K is breached. On the higher side 5,030?5,050 act as a resistance zone, unless markets break above this point fresh buying should be avoided.