The consolidation…

As suggested yesterday the market took a knock in the last one hour breaking the immediate support at 3010 level to touch 2940 level due to selling in the heavy weights. The markets are now in consolidation mode. The charts suggest that the support may emerge when the Nifty touches 2750 level. Today the support is expected at 286163 level and the resistance at 2993 and at 3011-13 level.
The Reliance is the early morning south runner but could hold the level at 1350 through out the day with 10-15 rupees swing. The higher level above 1390 could be a daunting task for now as the crude is in free fall. The ONGC will also see some knock today.

The HUL rally from 236 level to 256 level is heartening to bulls as the sole warrior survived in this Bears onslaught. Now the ICICI bank may loose some gains made yesterday, become weak below 432-31 level due to the selling pressure in the index counters. The earlier posts suggested good above 429 level holds good once again when it takes a U turn from the support levels at 406 and 393 level. Then the counter may cross the 490 level and could touch 520-25 level without much resistance. The NTPC is at the distribution mode at the higher level may see a correction of 20% from 166 level when it closes below that level.
The story of techs to our blog readers is quite evident and the worst victim of the frustration is Satyam. The bounce from 150 level to 203-05 is good to exit as it has tarnished it good image. The long-term selling is expected unless the company and the top investor come with rescue measures by announcing some important acquisitions above 500 million dollars to keep the earnings stream in tact.