Nifty giving up 20-30 points everyday

Yesterday was a sad close because it was below 5,950 and that too after a rally or attempted rally in the morning, which almost took the market to 5,980. So, there is no great momentum on the way down but gradually we are giving up a bit of ground everyday. Therefore, it is like a slow death, which is going on for the Nifty. It is not a collapse.

Yesterday's closing will lent more conviction to the bears that the market will eventually breakdown below sticky kind of support level, which the market wading through, which is anywhere between 5,900-5,950. It is falling at a very laboured pace but eventually the market probably may breakdown and that is the feeling that a lot of traders will take away from yesterday’s sessions. I think the cushion is only about 20-30 points and if a weekly close happens below 5,920-5,930 then traders, next week will be looking to short the Nifty with more conviction and to see if it goes down all the way to those 5,750-5,800 kind of levels next. Things have not moved in the right direction. Yes, it is not a fast falling market but everyday the Nifty is giving up 20-30 points and the Bank Nifty has also started weakening quite a bit despite the fact that bond yields softened yesterday, which is never a great sign.