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Below the Market Analysis by Mr. Ajit Mishra, SVP - Technical Research, Religare Broking Ltd

Markets edged lower and lost over a percent, pressurized by weakness in the select heavyweights.  After the flat start, the Nifty plunged sharply lower in the first half, followed by a gradual decline till the end. And, it eventually settled around the day’s low at 21951.15 levels.  All the key sectors faced the heat wherein realty, energy and auto were among the top losers.  The broader indices too slipped lower and lost over 2% each.

Nifty has again reached its short term moving average i.e. 20 DEMA and a close below the 21,900 mark would change the bias. And, it may result in further deterioration in the prevailing underperformance of the broader indices. Traders should thus plan their exit in existing longs accordingly and strictly avoid averaging to the loss-making positions. For shorting opportunities, prefer the laggards from the respective sectors.

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