Hello reader, hope you’re doing well. While other Asian markets are experiencing losses, Indian equity markets post opening with a gap-up, are facing significant selling. However, the markets may continue to be unstable throughout the day due to the global financial sector’s instability caused by the recent issues at Credit Suisse, as well as fallout from Silicon Valley Bank and Signature Bank in the US. The banking crisis is spreading, and this, along with selling by foreign institutional investors, is causing persistent pessimism in the market. Nifty’s most significant challenges are at its 200-EMA at the 17,570 level, while the immediate support is at 16800-600 levels.
Important points to note:
- We are clearly seeing a big impact on our markets following the banking crisis in the US, which has led to consistent selling over the last few sessions.
- Immediate major support on Nifty at 16800 levels which was the previous major bottom formed, in October last year.
- If Nifty takes support at these levels and gives a good bounce, it can lead to a neat double bottom formation, but confirmation of the same once Nifty crosses 17300-500 levels.
- Nifty RSI near 30 levels, can expect a small bounce from here post consolidation.
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.