Market today: Look out at 4220

Due to negative global cues the Nifty slipped to negative territory after kissing 4300. It traded in negative zone throughout the day and closed on a very weak note below
4250 levels. For the last couple of weeks the Nifty has been facing stiff resistance at 4300. Today the index touched the 4300 level for a brief while after which it saw
heavy selling.

In the short term, 4300 would remain a stiff resistance and unless the Nifty sustains below 4300, it might go into a bigger consolidation mode wherein it
could trade in a broader range of 4150-4300. In the short term, only if the Nifty breaches and sustains above 4300 can one expect a major upside that can lead
the market to 4320-4350 levels.

On the downside, the Nifty has support near its 10-day moving average and at
4220 below that. As long as the Nifty trades above and closes above 4220, our bias will remain positive with reversal point at 4220. On a break below 4220, our trend
will change with the next support at its 20-day moving average, which is at 4180.

On intra-day basis or on the hourly chart, the Nifty continues to trade in the middle of a broader channel but due to today's selling one can expect the index to drop till
the lower end of the channel, targeting 4220. As shown in the Nifty 60-minute chart, the Nifty is trading in a broader channel where it takes support at the lower end of channel and faces resistance at the upper end (marked with a circle). As it faces stiff resistance at 4300, one can expert the Nifty to fall back to the lower end of the channel.

The Nifty has to bounce back from 4220 for the uptrend to continue in the market.
Wipro can test Rs565 with support at Rs525. McLeod Russel looks good and should test Rs67 with support at Rs62.5. Infosys is at its support level of Rs1,900 and can test Rs1,945 in the short term.