Nifty has lost over 300 points in the last four trading sessions with three of them staying in the red. It lost over 225 points today (over 2%) amid US-China trade war tensions as well as weak domestic GDP growth data. This bearish trend is expected to continue for tomorrow, with the immediate support coming at 10700 level, which should be a good opportunity to initiate a long trade in Nifty.
PSU banks would continue to remain in the focus after the government announced merger reform measures on Friday. Besides, the auto sector will also be in focus after the sector experienced an over 34% decline in sales in August.
Nifty PSU Bank plunged over 4.8% in trade today, giving a thumbs down to the economic reform measures announced by the finance miniser after market hours on Friday, and the same will likely impact the markets in the session today.
Nifty has been trading within a range of 10635 to 11145 in the past one month and now that it is nearing the bottom end of this range once again could present an opportunity to go long for the mid-term. However, the immediate future looks bleak with escalating trade war tensions, slowdown in auto sales, weak GDP growth figures and inability of the government to lift the market sentiments.
—Amit Gupta, co-founder & CEO, TradingBells