Trend remains down; relief rally may be possible
The nifty opened lower with a large gap down. The gap continued through the day, with the index closing lower at 10359, down almost 100 points.
Yesterday decline brought the nifty to a low of 10324, very close the lowest level of 19 Feb 2018 (10276).
It’s also states as a support near the lower band of short range i.e. of 10300 to 10630.
It is still too early to judge if this is a big trend reversal, or an intermediate correction, the long term trend must still count as bullish.
The intermediate trend may be negative. The support at 10275-10300 level will be critical.
Sentiment has been badly affected in banking and financials. The bank nifty slid from 27200 on the budget day to hit post –budget lows of 24825.
It then recovered to 25700 and crashed again, to recent lows of 24680. It is now at 24800. PSU banks spoil the banking bullish party.
Avoid trading in the bank nifty as private and PSU banks look still weak to trade in the market.
Major support of the bank nifty is 24600 – 24200 and resistance at 25200 and 25500-25800.