The much anticipated correction came today, with a rather large sell-off of 900 points from the top although there was little selling (800 cr approx.) by DIIs. The problem is that the fall was steep and fast which is going to make it difficult to trade the correction phase, as our major support (21000) is not far away. Below 21000, the index will correct up to 20000. However, the trend for now would remain sell-on-rise. The oncoming fall might be staggered with the DIIs building longs as and when the index goes down.
On the upside, the resistances lie at 21800-21900-22000-22120. Any of these levels, if seen, should be used to short.
On the downside, the supports lie at 21540-21375-21000-20900. Will advise short-term/swing traders to not long but wait to short.
Expect the expiry range for the coming week to be between 21000 & 22000.
Happy Independence Day!
On the upside, the resistances lie at 21800-21900-22000-22120. Any of these levels, if seen, should be used to short.
On the downside, the supports lie at 21540-21375-21000-20900. Will advise short-term/swing traders to not long but wait to short.
Expect the expiry range for the coming week to be between 21000 & 22000.
Happy Independence Day!