Indian Indices snapped the gains of 7th December and again witnessed a sharp sell off amidst weak global cues and news of State elections result. The selling was seen across all segments and sectoral indices were down almost 1-3% in trade, today.
Nifty opened at a measurable Gap down of 185.70 at 10,508.70 and closed the day 10,488.45 documenting losses of 1.92%!
Bank Nifty also witnessed a Gap down opening at 26,073.65, down 521 points from the previous closing of 26,594.30. It made a low at 26,072.00 and ended the session at 26,102.65.
Among the sectors, almost all sectors ended the day in red. The ones that lead the pack were Banks, Financial Services, Private Banks and Realty.
Nifty has formed a Bearish chart Pattern in December series till date exhibiting a strong selling pressure. Chances of Nifty reversing its move are very bleak, as of now.
On a technical front, Weekly charts of Index display a Dark Cloud Cover Pattern, which is a bearish Candlestick pattern indicating an inability of the markets to hold onto higher levels, thereby inducing a sharp sell off from higher levels. Daily Charts also display a strong sell off after a weak gap down opening. The index is also trading below 50, 20 and 10 SMA which is again not a good sign for Bulls.
Short Term and Intraday traders shall try to position themselves on Short/Sell side as weak global cues which include a weak weekly performance by U.S markets, might still over weigh Indian markets in next few sessions. Also, the market would react negatively to resignation by RBI Governor, Urijit Patel and specific sectors like banks and Financial services may react more severely to this piece of news.
Nifty may again succumb to selling pressure if the immediate intraday support of Nifty at 10,474 is broken. A zoomed in look at the 30 minutes and hourly charts also display a break in uptrend line which further signal possibility of more lower levels.
Bank Nifty may also see lower levels in short term as well as in Intraday time frame. Short Term traders shall be positioned on Short side. Fresh shorts may be initiated in Bank Nifty below the immediate resistance of 26,070.
Nifty Trading levels/Trade Date- 11/12/2018
Sell below 10,474 for targets of 10,425/10,350
Bank Nifty Trading levels/Trade Date- 11/12/2018
Sell below 26,070 for targets of 25,960/25,840
*All levels mentioned are of cash/ spot segment.