The start of week was a little jittery as the global markets slips into a red territory with Dow Jones slipping more than 1% and S&P losing 2.09% in the last trading session. The S&P 500 VIX consequentially rose a whooping 25.5% as fear crippled traders on the street. Asian markets are also following the suit and is trading in red losing over 0.50-1.% in today’s trade, as of now.
Nifty view– Nifty has been trading in a 100 points narrow range of 10,730-10,830 from the last week and is poised for a breakout sooner or later. Any break outside this range of 10,730-10,830 may trigger a fresh move in Index.
On Daily charts, Nifty has formed a bearish ‘Harami’ candlestick pattern which suggest further weakness in coming sessions. (I have been sharing my bearish view on Nifty from the last week)
As of now, the immediate support for Nifty stands at 10,730 odd levels and any break below this level may again trigger a fresh sell-off in the counter. Break of 10,699 will change the short term mood of traders and the trend will largely shift to sell side.
Short term traders may take fresh shorts below 10,730 odd levels for targets of 10,700/10,630.