Nifty 8573 /Sensex 27643 / Bank Nifty 18954
11 Advances /40 Declines/ 0 Unchanged
“Sensex dives 439 pts, Nifty ends above 8550; Infosys up 1% ”
The 50-share index was down 135.45 points or 1.6 percent at 8573.3 while the Sensex slipped 439.23 points or 1.6 percent at 27643.11.
Global geopolitics and weak data slammed global markets which lead to a bloodbath on Dalal Street as September quarter earnings kick starts. Benchmark indices slumped 1.5 percent touching lows seen on the day Indian government had confirmed surgical strikes across LoC.
Now Analysts are cautious of buying as 8500 levels are crucial for Nifty and further correction can still not be ruled out.
What led to this sell off?
What lead to the global sell-off were expectations of a December interest rate hike and weak China trade data. European market was weak as investors remained concerned after minutes from the US Federal Reserve's September meeting raised expectations of a December interest rate hike.
The central bank’s minutes released on Wednesday showed that three members of the Federal Open Market Committee had called for a rate hike. Few analysts are cautious that waiting too long to hike rates may drive the nation into recession
Our Recommendations
Nifty futures was recommended to sell around 8640—8650 and we booked full profit in this around 8560.
Another full profit was booked in PNB futures around 136.50---136 and it was recommended to sell around 139—140.
Our recommendation in Idea sell recommendation proved great as we booked full profit around 75.80. It was asked to sell around 79.00
In Options, we booked full profit in HDFC 1380 PE around 48 and it was recommended to buy around 15.
Now what to expect today???
Nifty has immediate support at 8550 levels and resistance is at 8630---8680.
A move and sustain below 8550 will take to 8480---8430 and then to 8360 mark else it could test it's resistance level of 8630---8680 again.
Further upside rally will see only close above 8680.
On the other hand, Bank Nifty has immediate support at 18800 and hurdle is intact at 19400.
Break and sustain below 18800 will take it to 18300---18000 else could test it resistance level of 19400 again.
Trade with levels only
Today's Top Pick
Sell IDEA future around 77.00 with stop loss above 80.50 for the downside target of 74---72.50
More will update soon during market hours!!
