Global markets spook markets; Indices are expected to end the month in the red.
Expecting trade wars concerns spooked the market, with indices across the globe skidding last week. Indices fell nearly 2% to a five month low.
Both the Nifty and the Sensex are set to end the month in the red, for the second consecutive month, after tumbling 4.8% and 4.9% respectively in February.
A gap- down fall of 1.2% on Friday has dragged the Nifty index lower to close the week on a negative note for the fourth successive week. The index has plunged 197 points or 1.9% and has closed below the 10000 mark for the first time since last October.
Last week, 200 days moving average poised at 10150 also failed to lend support for the index. Now, index is taking the support around 9920-9950 levels.
Technically, This month short positions will square off and after 2 month of weakness and markets also in the oversold zone so in Next Month high expectation of short coverings or pull back rally is not ruled out.
In today scenario, major support of the Nifty at 9900 – 9920 – 9950 and important resistance of the Nifty at 10200 – 10420 – 10630 – 10800.
Bank Nifty nose-dived 819 points or 3.3% in the previous week, decisively breaching key supports at 24500 and 24000. Both the short and medium term trends are down for the index.
The index can extend its down move and test support at 23500 in the near term. Further breach of this base level can intensify the downtrend and drag it lower to 23000 levels. Subsequent supports below 23000 are at 22670 and 22500.
Major resistance at 24000-24100 and upward breach of these hurdles will push index higher to 24500 and 25000 mark in the short term.
Emphatic move above 25000 is needed to push the index higher to 25500 and 25700 levels.
To change the downtrend, the index required to move beyond 26000 conclusively.