DSIJ Mindshare

Considering the daily time frame, the stock of Havells India Ltd formed a double inside day pattern near 100-day exponential moving average. The double inside bar is a price action candlestick pattern where two inside bars form successively.

The zone of 11,035-11,070 would now act as a strong support level as it is the confluence of the 61.8 per cent retracement of the entire upmove from the low of February to the April high and the rising 200 DMA. With the RSI almost near the oversold region of 30 and after a continued descend in the last nine trading sessions, Nifty has created scope for a technical pullbacks, which are likely to be resisted around the levels of 11,220 followed by 11,300. Stocks in news: Lux Industries, Engineers India, Tata Power, Avadh Sugar & Energy, Delta Corp, Shankara Building Products, Bajaj Finance, D-Link.

With China retaliating against the US with punitive tariffs, the global markets felt the pain and are bleeding red. The SGX in early trading is showing weakness of 0.90 per cent and this clearly indicates that a gap-down opening is in store for the Indian markets. Now, for the Nifty, the final ray of hope is 11,035 level as it is the 200-DMA.

The Index of Industrial Production (IIP) has contracted by 0.1%. This was against the consensus growth expectation of 1.2%.

Meanwhile, foreign investors have taken out the net amount of Rs 3,207 crore from the Country's capital market in the first week of May amid US President's decision to impose tariff on USD 200 billion products imported from China. In addition to this, uncertainty over the election result also weighed on the market sentiments.