Market Outlook of 24th May, 2018.

Big decline in Nifty brings index near 10400 supports; today may have been an exhaustion day with panic selling.

Nifty index failed to cross the previous day’s high and corrected towards 10420. It is making lower highs-lower lows for last 6 sessions.

Now, if it sustains below 10500 then weakness could drag it towards 10350-10333 zone. Index needs to negate the formation of lower highs and lower lows in order to get any short term stability, else weakness could persist.

India VIX moved up by 4.10% to 14.16.

Bank Nifty remained range bound compared with a sharp 100 point decline in Nifty. It has broken and closed near its 3 day support of 25700.

It formed a bearish candle and holds below 25700, could take it towards 25500 then 25250 levels, while hurdles exist near to 25950-26000 zones.

* This material is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities.

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