Global cues were good, but Indian Stocks markets turned negative after positive opening on Wednesday. Selling was seen in select capital goods, metals, pharma and banking stocks.

The BSE Sensex closed at 10,817 down 81 points after hitting an intraday high of 11,036 and low of 10,715. The Nifty shut at 3,330 down 1.04% or 35 points. It has hit a high of 3,401 and low of 3,296 respectively. Among the broader indices the BSE Midcap Index fell 40 points and the Smallcap Index slipped 65 points.

The bulls are finding it difficult to hold the momentum as selling pressure is witnessed at higher levels. We see a huge distribution happening in the last three days and going forward one has to be cautious.

The short term trend has indeed turned negative and the 13-day exponential moving average for nifty which is placed at 3,285 has to be held in coming sessions. If 3,285 is decisively broken then fresh weakness could prevail in the market and we could witness panic sell-off.

The market is tricky at this juncture as nifty has broken the lower level of the short trading band of 3,300-3,420 on an intra-day basis but closed above the 3,300 mark. In the last three sessions we have seen nifty making lower top and lower bottom, which is not a good sign. Nifty has to cross and sustain above the 3,420-3,440 levels to gain more strength in coming days or this rally might take a pause.

For the expiry support for nifty is placed at 3,230 - 3,155 region and a fall below will create more pressure and nifty can fall upto 3,095, which could be the best level to enter for a medium term investors. Strong intra-day resistance area is at
3,365-3420.

Huge selling pressure is there on the benchmark indices but focus can be shifted to mid-cap stocks at lower levels from an investment point. Markets are safe only if nifty maintains above 3,440.