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We still maintain our stance that the trend is volatile and pullback rally is in offing and selling may emerge. Hence trader needs to be cautious at current level.
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Dear Trader…
As expected markets were trading highly volatile during the day, as traders got anxious with Fitch’s statement that India’s medium-term growth outlook will assume a more critical role in sovereign assessment due to higher deficits and a slower consolidation path, in our last note, we had only mentioned about the possibility of a selloff at higher levels in the market. While trading precisely on the expected lines, Nifty saw a strong selloff at 15202, higher levels due to profit booking amid growing concerns over a spike in corona virus infections and recorded 12,760 fresh Covid-19 cases.
Traders also took note of SBI Research revised its contraction forecast for the current fiscal year to 7 per cent. The agency had earlier forecast a 7.4 per cent contraction in 2020-21 GDP numbers.
On the global front, The US Dollar index crossed 90.50 marks again and pushed gold and silver prices lower. Both precious metals plunged on Tuesday amid a sharp rebound in the dollar index and better than expected US Empire State's manufacturing index.
India Gold MCX April Futures were trading lower on Wednesday tracking muted trend in the international spot prices. Gold and silver plunged amid a sharp rebound in the dollar index, we expect the dollar index to show further strength in coming sessions and push gold prices lower but silver could get support amid gains in the base metals prices.
Nifty saw intraday volatility and poor advance decline ratio. Risks of sharp and sudden selloffs at high levels remain. One needs to be careful and keep long positions under control and keep taking profits on trading and some investment positions.
The overall market breadth has turned negative on every rise, the negative market breadth was mainly due to the weakness in the broad market indices of NSE like midcap 100 and small cap 100 by around 0.70% and 0.21% respectively.
In coming trading session, main indices have almost reached the high, in context with a bounce in the global and the domestic economy. Interim corrections should be used to accumulate, as the broader setup remains positive, the market may turn a bit volatile in the short term, as it will be difficult to maintain the momentum given important upcoming events so index is likely to trade volatile,
We still maintain our stance that the trend is volatile and pullback rally is in offing and selling may emerge. Hence trader needs to be cautious at current level.
The trend deciding level for the day is 15232. If NIFTY future trades above this level then we may witness a further rally up to 15272-15303 levels. However, if NIFTY trades below 15130 levels then we may see some profit booking initiating in the market, which may correct up to 15088 to 15005 levels
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Ø INDEX MOVEMENT - 18.02.2021
Nifty Future has resistance at 15232 – 15272 Point; above which other resistance levels are at 15303 – 15330 Point with highly Volatile Trend,
Nifty Future has Downside support levels are at 15133 – 15088 Point; below15088 Point, other support levels are at 15008 – 14970 Point.
I am positive for the next bullish trend only above @ 15272 Point but be with the trend. Let the market decide further moves.
As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario.
Regarding Long term positions, it is preferable to remain cautious now.
If Nifty Future crosses @ 15272 Point, again then the upper side target is quite high and it may touch @ 15303 Point in the short term.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
Bank Nifty Future has resistance at 37137 – 37272 Point; above which other resistance levels are at 37373 – 37404 Point with highly Volatile Trend,
Bank Nifty Future has Downside support levels are at 36808 – 36676 Point; below36676 Point, other support levels are at 36575 – 36474 Point.
I am positive for the next bullish trend only above @ 37373 Point but be with the trend. Let the market decide further moves.
As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario.
Regarding Long term positions, it is preferable to remain cautious now.
If Bank Nifty Future crosses @ 37373 Point, again then the upper side target is quite high and it may touch @ 37404 Point in the short term.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
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