Market Analysis
GIFTNIFTY trades flat, USDINR crosses 91 mark, weakness in Rupee and the market to persist till Q4, while second half of December anomaly keeps market choppy for intraday traders.
Support levels: 25800- 25450 Resistance levels: 26060
Nifty breaks support of 25900 on Tuesday, invalidating the Double Bottom on hourly chart, on line chart support is seen at 25800 and a closing below same may intensify selling the market to 25450 level.
Despite the December anomaly, FPI/FIIs are actively selling in the market, while we may see reduced buying activity from DII which is reflected on yesterday's data. Weakness and chopines to persist in the market with lower intraday trading opportunities.
When there is inconclusiveness on the candles, line charts provide better clarity as its plotted using daily close, thus removing intraday volatility. While on the higher side above 26060-26100 are the market may see an attempt for a new life time high.
BOJ is expected to hike 25 Bps on Friday, guidance on further hikes is crucial to watch, it may result into increasing selling pressure form FII/FPI as carry trade unwinds and equity markets sees flight of capital, which is also evident with rupee sliding, USDINR made new low of 91.08 as predicted.
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