- US tech stocks are being deemed overvalued which is causing selloff in US market.
- US markets closed lower. ❌
- Asian markets are mixed.
- SGX Nifty is down. ❌
SGX NIfty indicates another negative scenario. We have two crosses from global cues. As discussed earlier, as the market is opening almost flat to gap-down, market has higher chances of trending down.
Intraday Trade Setups
- Both Nifty and Bank-Nifty opened almost flat. There was a huge red candle on the opening which set the bearish tone for the day.
- After that market consolidated for some time.
- Nifty created a wedge pattern with lowers highs and lower lows.
- At 10:50 am, nifty broke out of this range.
- Bank-nifty was consolidating in a range.
- At 10:50 am, it broke out of that range.
- At 11:40 am, both nifty and bank-nifty after breaking out their respective consolidation, went on to retest previous support level now turned resistance and got rejected with the formation of dojis , wicks and rounding top.
- Almost all sectors closed red with nifty auto and nifty media being the biggest losers.
- Only nifty metal ended in positive territory.
- Tatasteel was the top gainer in Nifty 50 with 2.87% gain.
- IOC was the top loser in Nifty 50 ending at -4.02%.
- Nifty 50 advances: 5
- Nifty 50 declines: 45
Trade Plan for Next Session:
- Today again markets trended to the downside before recovering and then again falling back.
- Today, FIIs were net sellers for 3383 crores while DIIs were net buyers for 2267 crores.
- Today's volatility in the second half can be attributed to index-management on monthly expiry.
- If market opens flat or gap-down, the market may move to the downside.
- If market opens significant gap-up, there may be a initial sell-off and sideways market due to expiry.
- The trend is the downside, hence short setups should be mostly considered.