Tech view: Nifty precariously poised

Yesterday, the Nifty touched a high of 4,951 in early trades, but eventually tumbled to a low of 4,814 - down 137 points from the day's high. The Nifty finally ended with a significant loss of 61 points at 4,830. Having broken 4,825 again, the index is most likely to re-test its recent low of 4,766 soon. A break of 4,766 could see the index drift lower to test its long-term moving average around 4,625.

Given the fact that the Nifty has precariously closed at the support levels, a break of which could trigger second round of heavy selling. Chances of deep cuts from current levels cannot be ruled out, weak global cues or any negative news flow is likely to have a cascading effect on our markets.

Today, the index may face resistance around 4,880-4,900-4,915, while support on the downside could be at 4,775-4,760-4,745.

The Sensex moved in a range of near 400-points, and finally settled with a loss of 193 points at 16,163. The index is likely to find support at 16,015-15,910-15,800, while face resistance around 16,700-16,805-16,915. For details on stocks visit: smartinvestor.in

Although, quite a few stocks are trading in oversold zones, chances are bright that they lose further ground before any meaningful bounce comes. For details on stocks visit: smartinvestor.in