In my comments from yesterday posted here, I had mentioned that I was not comfortable with the 100 point rise in the Nifty without the supports of the banks at the close of the session yesterday.
Well the selling began in earnest at the open itself and a trip to the lows at 5935 was made, before the market started auctioning again with horizontal development enough to give the market a balanced look till 2.45 pm.At that point with 45 minutes for the session and the week to end, I was seriously thinking that the downtrend would be ending as we looked like putting a neutral day at the swing lows of the move.
The aggressive selling which followed has put the market with a real chance of hitting 5765-5750 NF levels.
The only hope for longs would be a change of sentiment over the weekend and a rally at the open to discard this move late in the day.
Looks tough but not impossible. 5925-5937 will hold the cue on Monday morning if we do get back over there.
The Bank Nifty got resisted at the POC all day today in it’s rally attempt ( the Nifty stayed below VAL ).
The lows of October were visited by the Bank Nifty before it closed around 80 points up from there.The Nifty closed below October Lows.
In itself it has sent out a message.
The picture will be clear on Monday Morning.