On September 22 and 23 when the market took its first round of hammering, the Nifty had tested 2465 low to close 2476 on the 22nd, and tested 2453 to close 2477 on the 23rd. These were also the bounce back levels.
So as far as these figures go, it stands to reason that 2453 and 2465 should form strong supports for the Nifty in the current crisis. Neither has been tested yet.
On the other hand, while the weekly RSI shows over-bought rerritory still, in the daily short range we are quite over-sold now, and the implications of all of the above is that we may see some kind of a relief rally sometime soon.
For now as for always, we are dependent on all the international forces and the FII and Domestic Funds.
As far as our own playground goes, there are plenty of value picks now that a large number of frontline counters are showing near fair value, both in the large and midcap space.
There is no clear indication of a trend reversal yet, but the Bulls would still like to gain from the current levels. On the other hand, the FIIs are hedging their positions heavily. All this is pointing at some strong choppy sessions ahead.
As there could be a relief rally over the next few sessions, this could be used to come out of trapped positions. For the rest, no new positions still holds.
The levels:
It's important to climb above 2504 and close there today. This would help the sentiment in the coming days.
Above 2504, 2520 and 2530 have been sticky levels in the past.
The supports are at 2464 and 2453 historically, and below this 2430-2435 could be tested.
