Good morning, Friends!
Things have not improved from where left them last night. Selling pressure continued and now we're looking at Gap Down below 17000 level, maybe below 16900 as well. We still have time for opening, maybe things would change by then. Assuming opening below 17000, which is still a huge gap down of 200+ points, it puts a trader in dilemma for next step. You can't go short because of less RRR and you can't go long because of unsure nature of market. Better to wait for 1st 15 min and see how market is reacting to gap down. As mentioned yesterday night, 17000 is very strong support and bulls will fight to save it. If market remains below 17000 for first 15 mins, we may see 16900/16800 levels. However, if market is able to reclaim 17000 and stays above this, 17100 would be 1st Resistance that it'd face. Basically the range we discussed yesterday of 17300-16800 is on a test here. If not comfortable, focus on stock specific trades. Assuming market opens flat, immediate resistance is placed at 17200 and the support at 17100. #NIFTY50 | #NIFTYBANK
Sectors in focus: PSU Banks, PSE, Auto
Wishing you a profitable day ahead!
Yours, @NIKHILMAHESHWARI