Focus on PSU banks

Nifty failed to breach higher levels due to selling pressure despite agap up opening following positive global cues. The muted session was witnessed as the cues were mixed along with market internals.

It was theselling pressure in Metals and PSU banks that was seen in the initialopening and later worsened with metals losing almost 2 per cent. On the positiveside, Pharma as a defensive play turned up gaining more than a per cent along with FMCG.

Nifty is well above its short term 20 MA along with 50 MA positive on arolling basis but it is price action with confidence that would take ithigher. In terms of levels, it has to breach 18,310 on a closing basisand sustain the lower levels. Previously important support was seen at17,700 but at present that is now shifted to 17,870 – 17,900.