Nifty ends the day on a negative note making a short black candlestick signifying a limited price movement. Small black candlestick signifies the selling pressure which is relatively weak with a limited price movement as Nifty had multiple resistance and confluence of levels at 8550. Nifty managed to hold 8500 level on closing basis as it rebounded from lower levels on the back of buying from bulls on a small correction.

In coming sessions if Nifty manages to close above 8540 then next resistance is at 8660 which can be tested by bulls before expiry while 8470 on downside now hold the key for bears. if it is taken out then a selling pressure can be seen to 8400 levels. OI data suggest addition of OI at 8700 which signals favorable opportunities for bulls in coming sessions with support now shifting up towards 8350 – 8380 as per the OI reading. we may see profit booking but any weakness should be an opportune moment for bulls.

NIFTY IT may see some buying with good momentum seen in HCL, INFY and TCS ahead of result and robust earning is expected due to weaker rupee for the Q1FY17. metals and realty may see profit booking going forward while NBFC may see buying with bullish chart structure across sector.