At cross roads…..

The fear for “Longs” holding threatening the Bulls to hold despite the global good news due to the positive cues from the US. The markets are not enthused by the global cues because of delay in keeping the rate cut by the RBI and the Govt. is seriously busy with the election schedule posing a threat to Bulls.
The technicals were not violated due to this steep fall from a high of 2790 level to 2638 level. The steep fall push out those small investors who bought at lover levels and keep them away as this wild swings create tension. The informed individuals and HNIs, DIIs, MFs and the FIIs take the lower level to build their positions to average out and churn the portfolios to performing sectors from non performing sectors.
The concern is that the SBI trading below 1080 level and the Nifty trading below 2670-80 level. The Nifty low building is good but the pruning highs are a concern as the heavy weights turned bearish. The Bears are not applying the pressure but the Bulls are running away to accept the positions at higher level due the negative sentiment spread over the bourses. In case the Nifty crosses the resistance at 2693-97 level and closes above 2670 then the consolidation is on the buy side.
The RIL has to cross the 1140 level and close above 1109-11 level, SBI has to cross the 1147 and close above 1120. The ONGC has to cross the 697 resistance and the Bharti shall trade above 640 levels to accept the bear pressure is over and the positions built at the lower level.