The benchmark index Nifty will continue to be weak and what needs to be seen is whether the support at 5764 holds today or gets breached. The immediate supports are at 5756 and 5724. It may be noticed that 5764 is an important support point and if it does not hold on closing basis, then the market might as well be headed towards 5558. Otherwise we are near the intermediate bottom although there are no signals of supply pressure easing.
That being said, there might be a bit of pull back today on account of short-covering but fresh longs will only come in the system if Nifty manages to trade above 5899, which at the moment seems unlikely, as it will face stiff resistance at 5834 and 5853, at which points the intra day traders may consider shorting Futures and covering them around 5764 levels with 5899 as stop loss.
Mid term investors may continue to accumulate by placing bids for HDFC Bank at 650.25 and ITC at 327.35, both in small quantities. The latter seems to be in a bull market of it's own.
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