Reliance, Castrol, Zee may gain momentum

Bull market or bear market today?

After a sharp fall, Nifty consolidated in the major part of Monday's session and thus resulted into the formation of a 'Bearish Flag' pattern on intra-day charts. Hence, a breakdown from the mentioned pattern (only below 11310) would be a negative sign for the index.

Stocks likely to be in the limelight today?

Stocks like Reliance, Castrol and Zee Entertainment may show some strength in the coming days. However, HDFC Ltd, HDFC Bank and Hindustan Unilever may continue its bearish momentum.

Sectors likely to impact market today?

We witnessed breakdown afresh in financial services and FMCG indices, and this indicates further selling pressure in the coming days. Oil & gas sector is showing initial sign of strength.

Your mid-term view?

Nifty gave a breakdown from the 'Rising Channel' on the daily time scale and yet there is no sign of reversal on charts. However, there is a possibility of a formation of Bullish Harmonic Pattern called 'Bullish Bat' and the potential reversal zone of the same is placed in the zone of 11220–11260.

Jay Purohit, technical & derivatives analyst at Centrum Broking