After yesterday’s cliff jump of 140 points, Nifty woke up to a gap down today.
The global jitters are driving Nifty lower, which lead to a breach of the 7300 level. Throughout the day Nifty traded near its lows, in the range of 7280-7320. It was down by almost 90 points whereas Sensex fell 266 points .
The majority of the drag came from the IT and PSU bank stocks, though the steel and auto ancillary stocks were weak as well. Infosys opened with a downside gap on due to statement of Cognizant Technology Solutions’ board that they expect the slowest revenue in last 14 years. (Cognizant is a Nasdaq listed company). Infosys then consolidated during the day, whereas, Mothersun sumi dunked by 11% following poor results, whipping out gains of past 15 trading sessions
CHART OF THE DAY
Eicher motors has formed multiple dojis near a very important price level of 18880 roughly. In the past this level has acted as the support and resistance several times and this time again.
If we take a look at the momentum indicator, ie, RSI, even that has turned lower . All these factors indicate that there is weakness in this stock.
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