“Trading for the week began on a cheerful note owing to favorable cues from the global peers. Subsequently, we saw extension of this early morning gains to eventually end the session by adding 0.86% to the bull’s kitty.
Last week, we saw Nifty falling by nearly 400 points from its weekly high and hence, the market seemed to have entered an extreme oversold territory on minor degree charts. In such kind of scenarios, we generally tend to see some relief rally, which is generally sharp in nature. This is what we saw today in most of the beaten down high beta counters. Since, the weekly charts are not so encouraging due to last week’s correction, today’s bounce back in technical terms can be termed as a ‘Dead Cat Bounce’. This term is generally used after a prolonged correction but this time with a shorter term horizon, we expect this relief rally to face a strong resistance in the zone of 9820 – 9852. Going ahead, we would continue to see market remaining under pressure for next few weeks. Immediately, the daily ’89 EMA’ level of 9600 – 9580 is to be tested soon. Traders are repeatedly advised to remain light and avoid taking undue risks as individual stocks may continue correcting in next few days.”