The strategy should be to short trade if Nifty bounces to given levels and place a stop loss at 15800 or buy Nifty if it drops to 15100-15000 with a stop loss at 14950. ![]() On the other hand, the previous support of 15650-15730 levels has now become resistance to the market. With the Nifty closing below 15400, the current bearish sentiment may see the index slide further to 15100 or 15000 in the near term. It was a decisive dismissal, that too on the day of the big event, thus inviting a pattern of further weakness in the medium term. Technically, the Nifty finally dismissed the key support of 15650 which it held since March. Rising interest rates to curb inflation menace and falling crude oil prices is creating fear amongst investors that the world could be heading towards a major economic slowdown as demand falters. ![]() ![]() Markets witnessed frenzied selling in the closing stages of the trading session, after a sharp slump in key European indices prompted investors to unwind their position further. Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities: We feel it’s prudent to stay light and align the positions accordingly until we see some decisive signal of reversal. After the decisive breakdown below 15,650 in Nifty, the next major support zone exists around the 14,800-15,000 zone. Markets are skeptical about how the global economies would attain growth amid the aggressive tightening. The broader indices too ended with the sharp cuts and lost in the range of 2.5-3.5%. All the sectoral indices traded in tandem and ended lower wherein the metal and media stocks were trashed badly. Consequently, the Nifty index settled around the day’s low to close at 15,360. 15,670 levels in Nifty on the weekly expiry day further added to the pressure. However, it couldn’t sustain for long and gradually drifted lower as the day progressed. Initially, the benchmark opened with an uptick, in reaction to the rate hike by the US Fed, which came in line with the expectation. Markets tanked on the weekly expiry day and lost over 2%, tracking feeble global cues.
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