Reliance Ind, Castrol, Zee may gain strength

1. Bull market or bear market today?

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

2. Stocks likely to be in limelight today?

Reliance, Castrol and Zee Entertainment may show some strength in coming days.

3. Sectors likely to impact market today?

We witnessed fresh breakdown in financial services and FMCG indices and thus indicates further selling pressure in coming days. However, oil & gas sector is showing initial signs of strength.

4. Your mid-term view?

Nifty gave a breakdown from the 'Rising Channel' on 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