Blood bath started in US Markets as Dow Jones dropped around 7% in yesterday’s trading session. Investors turn fearful due to increasing cases of coronavirus.
SGX Nifty is also indicating a gap down opening of around 3%.
Important Events Today
Today we have moratorium hearing in SC. If interest moratorium is given by the supreme court, banks will be again in pressure and may fall.
Avoid taking any heavy position during the day.
Technical Setup for Nifty50
Nifty50 broke important support levels of 10000 levels and closed 1% down at 9000. It has given a clear indication of sell signal and SGX Nifty already trading in deep red.
Reliance was weak from the last 2 days and was clearly indicating weakness.
Support levels are 9800, 9575
Resistance levels are 9950,9735
Technical Setup for Bank Nifty
BankNifty closed in deep red and we saw a heavy profit booking across all counters. Heavy weights like SBI, HDFCBank and HDFC all were down 1-2%.
Support exists at 19800, 19400.
Resistance at 20630.
FIIs Position
FIIs have reduced long positions and have sold heavily in cash markets. FIIs became net seller in last 2 days.
Covid19 Cases
India saw again the biggest spike in the number of cases, thought recoveries are also halfway.
Covid19 cases touched to 3Lac in India and we currently stand at 4th position in global numbers.
I am expecting cases to touch 4 -4.5Lac till the end of the month. and sooner or later India might come to 2 in the number of COVID19 cases.
