A minor correction…
Just a pause OR start of a change in trend???
We will have to wait and watch.
In the meantime, here’re the highlights of today’s trade:
- Nifty opened at 11477 and it remained the day’s high.
- It closed 11429. It made a low of 11420 and respected the support of 11400.
- Bank Nifty remained strong till the end of the day.
- With SBI’s disappointing results, Bank Nifty showed some weakness and corrected enough to close at 28124.
- BPCL shot up more than 3%. SBI fell more than 3% after the results. Jet Airways plummeted 8%.
Is there more correction to come?
Here’re the trade ideas:
- There is strong support for Nifty at different levels. But it holds 11400, there will not be much of a problem.
- On the other hand, US Futures are in red. Asian markets are down 1% in futures.
- Markets may open in red on Monday.
- If Nifty breaks 11400, there may be more weakness to come.
- Similarly, Banking Stocks like SBI have gone up aggressively in the past few weeks. So if there is a correction, Bank Nifty will quickly come down.
- The same applies to banking stocks. SBI, ICICI can correct quite a bit from here. So be on the lookout for weakness.
Don’t buy or open new position till it becomes clear on Monday whether it is a correction or not. It is advisable to keep track of global markets so that you make a well-informed decision.