Support Seen At 17000
The Nifty lost 27 points over the day to close at 5114. A day of
volatility yesterday as the index opened gap-up but could sustain
at higher levels leading to a sharp move down below 5100 levels
only to witness another pullback and retracement of 50 points in
the last hour of trading. Such volatility is typically seen when
supply exceeds demand and is usually an indication of a
correction ahead. However, in the current scenario the price
action will have to break the updated support of 17000 (5030 on
the Nifty) on a closing basis to confirm a pullback. Till that
happens any reaction would be considered as routine in nature
and part of the ongoing uptrend. The deeper supports for the
Sensex remain at 16600/16000. For the last couple of trading
sessions the index has been facing supply around our mentioned
level of 17500, which only tells us to be cautious. The oscillator
studies remain in sell mode while the averages are moving
higher daily with the price action. Overall, the index is likely to
stay volatile within the 17000-17500 zone and a breakout either
side would hint at the direction of the next major move.

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