Nifty finds support at 8040

Being a Friday, a minor pullback was anticipated after a week long sell-off in mostly every sector, but a higher dollar index dismissed the hopes as market continued to see selling pressure on any intraday pullbacks.
Again a gap-up opening was instantly sold into dragging the index below 8100 levels, any tries to reach the 200 DMA was used to short. Index was in choppy waters throughout the day with even a 10-20 point rally being sold into closing at 8074 with a minor cut of 6 points.
Index tested the long term support of 8040 which was seen as a buying opportunity by many investors, while on the up side it managed to reach 8128 but failed to go above 8130 which now acted as a key resistance.
Most of the sectors were in the red excepting select pharma and bank names. Metals saw deep gashes on account of a higher dollar which was comfortably trading at 14 yr highs.
Metals and banks which was considered to be trading on a positive note a day back saw cuts firming a break down across all sectors caused due to domestic issue of demonetization and a higher dollar which is seen a a key negative for emerging markets.
Among metals on Hind Zinc saw a flat closing due to higher zinc prices on the commodities front and Sun Pharma was the clear leader in Pharma sector with more than 2% points uptick.


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