Hello reader, hope you’re doing well. Yesterday was a pretty much straightforward trading day with the index movement playing out perfectly as per structure on charts and neat price action. As mentioned earlier, 17500 which would act as a resistance did so, and we saw a clean turnaround from this point and closed at the day’s low.
Important points to note:
- Nifty breaking 17300 on closing basis resulted in increased selling, across all sectors.
- Majorly affected sectors are currently Metals, IT and Banks.
- Key levels to watch out for now are 17000 and 16800, which were the previous major bottoms on the index.
- On Banknifty, 39500 would be the first level to hold, and if this is broken, next supports visible on charts at 38500 and 37500 levels.
- PCR at lowest levels of 0.59 in recent times.
- India VIX has given a 20% jump yesterday, reaching it’s 200 EMA levels. Expecting a slight cool-off from here.
- Markets can expect any upside only above 17700 and 18200 levels, till then it remains to be a sell on rise structure.
As always, risk management is key, and a proper system in place prevents one from losing out too much, in case of outlier events. Have a good trading day, and may the force be with you!
Disclaimer: this post is for educational purposes only, we are not SEBI registered analysts. Trades mentioned here are not trade recommendations. Equity Investments are subject to 100% market risk, please consult your financial advisor before investing.