Nifty can fall upto 3155-3110: Nirmal Bang

MUMBAI: Nirmal Bang is of the opinion that markets will continue to be extremely volatile and traders should avoid creating fresh positions. The brokerage says that if the Nifty breaks current support of 3310-3230 then it can fall further to 3155-3110.

���The bulls are still holding the momentum and this strong uptrend can get weak only if Nifty breaks the first support of 3,310. Until then we could see the markets trading sideways and in a tight range band of 3300-3520. A clear and faster direction will emerge only if Nifty breaks this narrow range.

Now technically the RSI is at 69 and is slightly in an overbought territory. Secondly Nifty is facing resistance above its 200-day moving average. Going forward one has to see if Nifty manages to sustain above its 200 day SMA and then create new position. What we believe is that nifty should correct at least 5-8% from the current level and consolidate at lower level before making a fresh move.

Markets have become extremely volatile in last couple of days and going forward we believe that this volatility will continue and markets will go up very rapidly and will come down very rapidly. It���s certainly not the region to create fresh positions. The immediate short-term support for Nifty is placed at 3,310 ��� 3,230 region and a fall below will create more pressure and Nifty can fall upto 3,155 ��� 3,110 in coming days, which could be the best level to enter for a medium term investors. Strong intraday resistance is at 3,420,��� the brokerage note said.