A STEEP FALL IN NIFTY DUE TO GLOBAL WEAKNESS; NIFTY PSU BANK AND NIFTY REALITY ARE THE BIGGEST LOOSERS
A STEEP FALL IN NIFTY DUE TO GLOBAL WEAKNESS; NIFTY PSU BANK AND NIFTY REALITY ARE THE BIGGEST LOOSERS; SHORT TERM TREND CHANGES TO SIDEWAYS; AVOID TRADING THE INDEX FOR THE TIME BEING; FOCUS ON INDIVIDUAL STOCKS
Nifty opened below 8750 with a huge gap down of more than 130 points on global weakness. After a gap down; prices traded sideways for the whole day and closes with a loss of almost 150 points.
The index is now trading near its very strong support zone 8670 – 8700 and it is possible that the index may spend some day near this support zone. The chances of building a trading range here is very high as the prices have seen a decline of more than 250 points in just four trading days. Short term view is sideways hence we should avoid trading in Nifty as well as in Bank Nifty for the short term. We should shift our focus on individual stocks for both buying as well shorting opportunity.
Bank Nifty opened with a gap down of almost 380 points at 19861. The index went below further and made its intraday low near 19735. Finally the index closed at 19798 with a decline of almost 449 points.
In last four trading days the Bank Index has seen a down move of almost 770 points. Today’s sharp decline suggests us that some choppy and sideways movement are ahead. So we may see some kind of consolidation for next few trading days.
Another scenario may be the decline continues. Then a strong support may
emerge near 19100 – 19200 and then a consolidation.
As of now we do not have a new pattern which suggests a new trading
opportunity here. So, avoid trading in the index till next opportunity arises..
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