Markets fall due to trade war concern between US – China; Multiple levels support at 10000-10050; focus on good quality stocks, avoid small caps.
Nifty index failed to hold above its crucial resistance at 10276 and witnesses sustained selling till the end of the session.
The index wiped out gains of previous 2 sessions, which indicates bears again hold the grip in the market.
Now, if it Nifty holds below 10180 weakness could be seen towards 10050 and then the psychologically 10000 mark, while hurdles are seen at 10222 then 10276.
Options Put data suggest that significant call writing was seen at 10300 and 10400 strikes, which could restrict the upside.
India VIX moved up by 7.64% to 16.34. A Sudden spike in VIX after consolidation of last 6 weeks has given the bears an upper hand.
Bank Nifty opened on a flat note. However, it corrected by more than 400 points on weak global cues.
Now, if it sustains below 24100 level, then only it may slip towards 24000 then 23750 while hurdles are seen at 24350 then 24500.
If Bank Nifty closes above 24500 then 24800 -25000 -25200 -25500 levels are not ruled out.