Sensex has support at 16697: Khandwala

According to Khandwala Securities Market Preview report, for today Sensex has a major support at 16,697 and the Nifty at 4,943. Below these levels the markets would fall to test the lows that they bounced from day before yesterday.

Khandwala Securities Market Preview report:

• For today Sensex has a major support at 16,697 and the Nifty at 4,943. Below these levels the markets would fall to test the lows that they bounced from day before yesterday. On the higher side the markets would face testing times as they try moving up. Weakness to continue and we need to see how the markets react at the support levels.
• Mr Market is willing to bet overweight on cash levels as the stocks are likely to remain in a two-way mode following mixed cues from the global markets, as also it awaits major economic numbers through this week.
• Our concerns arise from expectations that economic activity growth rate might slow as government resort to exports curbs and global financial market stability still seems far from over.
• China industrial production has cooled for April month.
  The stocks are mid-way between the March lows and early May highs as both the beasts on the street - the bulls and the bears - try to recoup from their bruises.
• After slaughtering the bears last week, bulls need the much sought after juice (FII net inflows) the tap for which has rather dried as per SEBI figures MTD and YTD.
• Asian markets are trading in mixed trend. Taiwan and Shanghai are up by 0.2% and 1.8% respectively, while Nikkei, Hang Seng, Kospi and STI are down by 0.3%, 1.7%, 0.3% and 0.7% respectively.

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