On Monday we wrote

“This week we need to wait and see whether the Nifty can sustain above 6000! In our view the market is likely to struggle staying above 6000 at least in the short term”.  Once again on Tuesday we clearly informed that though the market behaved as if it is in the perfect bull market, it is bullish only when Nifty closes above 6050. As expected by us the CNX Nifty lost 75.55 points yesterday.

Banking, realty stocks pulled down the indices as RBI indicated to tighten liquidity in banking system

Many banking stocks including Yes Bank, IndusInd Bank, ICICI Bank, Canara Bank, State Bank of India, Bank of Baroda and Axis Bank went down by more than 5% in a single session. Have we lost the momentum now?

As informed several times in the newsletter, as long as Nifty stays above 5950 we are in the neutral zone. Once it crosses above 6050 we enter into bullish zone. Incidentally yesterday the Nifty retreated from its lower levels indicating the mood of the players. Though the market went down as much as 100 points just after the opening bell, it managed to pull back from the lower levels. The market may consolidate at current levels for some more time. Today the market may go up as the government allowed higher FDI in almost a dozen sectors, including telecom and defense.  Let us watch the show and inform you more about the market in our next edition.  Technically,  Nifty has support at 5900 and resistance at around 6000.