Jai Bala, Technical Analyst, Reliance Equities International, said

In the past five sessions the market has retraced the fall of the previous six days. He feels the amplitude is higher but the time taken is quicker, which is actually a bullish sign.

He does not see the Nifty slipping below 4,370. “In the worst-case scenario, it would probably come closer to 4,240. But I suspect the market is going to hold 4,370. Probably today or tomorrow we are going to have a modest, flat market, or a slight pullback.”

Speaking on resistances for the Nifty, Bala said 4,692 is the biggest resistance level which he expects the market to clear. “The next resistance beyond 4,692 is 4,800 and way beyond it is somewhere around 5,300. The market is going to head somewhere between 4,690 and 4,800 and after that it is going to consolidate for a while.”

He is bullish on the IT sector. “I would be looking to buy on dips the metal, IT, and select PSU and pharma stocks.”

source: MC