Sensex (31531) / Nifty (9820)
Yesterday once again, our markets opened lower owing to weak cues from the Asian peers. Subsequently, the index consolidated for a while; but, a massive sell off in the latter half dragged the Nifty even below the 9800 mark. A modest recovery toward the fag end trimmed some portion of losses to conclude the session with a cut of 0.89% over the previous close.
Yesterday’s session was a perfect example how stock specific destruction happens and market surprises by its sudden/ unexpected reversals. During the day, so many midcap counters plunged more than 5-10% with an ease. Such development can be horrifying for a short term trader and hence, we have been repeatedly advising to stay light in the market. In fact, with reference to our yesterday’s article, we had a hint of this broader market selloff and hence, advised caution while selecting a stock. Now, going forward, our market is likely to remain under pressure and any intraday bounce back towards 9850 – 9900 is likely to get sold into. On the flipside, we will not be surprised to see this corrective move getting extended towards 9760 – 9700 in a day or two. Traders are advised to remain light and avoid taking undue risks as individual stocks may continue correcting in next few days.
Nifty Bank Outlook - (24217)
The Nifty Bank index opened yesterday on a flat note but corrected in the initial hour itself. The index then consolidated near its hourly support of 24200 during the day. However, a sharp selloff in last hour of trade led to an extension of the correction. Although the index recovered marginally in last hour of trade, the index ended this volatile day with a loss of 0.65 percent over its previous session’s close.
We have been advising traders to be cautious on the market since last few days. The stock specific correction seen yesterday is usually seen during the corrective moves. Also, proper risk management is a must during such volatile times which is the reason we always emphasize traders to strictly follow money management principles. We continue with our advice to remain cautious and stay light on positions.
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