Hello reader, hope you’re doing well. Yesterday’s trading session was pretty much a straightforward one with the structure of sell on rise being followed, price action confirming the same. At the same time, one needs to note that all major world indices are near their 200 EMA levels, which acts as a major support zone, most of the time, given that these levels aren’t breached on the downside with increasing volumes.
Important points to note:
- India VIX increased by 11% yesterday which has resulted in an overall increase in premiums and volatility in the markets as well.
- We saw Nifty closing below 17600 which was a major support zone, along with it closing below the 200 EMA levels.
- 17350 continues to remain the previous bottom, which is the lowest point in the index in the correction from 18800 levels.
- The market is expected to open in the green as trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 0.26%, around 46 points.
- US markets closed flat, with a slight decline of around 0.2%, while at the same time European markets ended positive, which will provide some relief overall.
- European markets are structurally strong, outperformance expected from these counters.
- PSU banks as mentioned earlier have corrected and dipped from recent highs, major levels to watch out for now would be 3480 and 3250 (chart shown below).
- With today being the final expiry of the February series, expect more volatility to kick in, for today.
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.