Short-term trend of Nifty looks weak

The market tumbled from days highs on Wednesday after private weather forecaster Skymet said India's monsoon rains were seen below normal this year.

The Sensex closed 180 points or 0.46 per cent at 38,877, while the Nifty settled 69 points, or 0.59 per cent at 11,643.

Among Sensex losers were SBI, Yes Bank, Bharti Airtel, L&T, Sun Pharma, M&M, ICICI Bank, ONGC, RIL, Asian Paints, Vedanta and HUL.

According to analysts, the market seemed to have given some reality check to those who became gung-ho after index surpassing previous highs. The bias still remains bullish but the stocks at elevated levels, traders should not become too complacent and enter at any level.

Technical View
"The Nifty closed in the negative territory in the last trading session and with that the wave IV down on the daily chart seems to have started. The Nifty is still forming higher tops and higher bottoms on the daily chart and till that continue the uptrend in the short term continues. On the lower side, there is support at 10545 levels whereas the resistance is at 11800 levels which is the short term target as well," Jay Thakkar Head Technical and Derivatives Research Anand Rathi Shares and Stock Brokers said.

According to Nagaraj Shetti - Senior Technical & Derivative Analyst, HDFC Securities, the short-term trend of Nifty is weak and one may expect further weakness in the next session. Immediate supports to be watched at 11,550 levels.

 "We still believe that it's a matter of time we would see new highs soon (on a sustainable basis). Now, with today's sharp decline, Nifty has precisely filled the gap created on April 1 and also retested '5-day EMA'.