India VIX fell 1.47 percent to 18.55 levels. However VIX has to cool down below 16 zones to get the next leg of smooth upside rally in the market.
The worst fall was seen in 2008 when the index plunged 12% followed by 2011 when it saw a decline of 7.7%
The 10-Year bond yields have also softened from the high’s of ~8.20% few months ago to 7.75% giving some relief to the banking/NBFC sector.
Even though market might be giving mixed signals, but experts suggest investors to stay long on the index with a stop below 10,440 levels.
Volatile movements based on current political scenario involving elections, along with any downside on GDP growth are big headwinds for the market, Naveen Kulkarni, Head of Research at Reliance Securities said.
The market is likely to stay in a range of about 1000 points, i.e. 10,000 will act as crucial support till next Diwali and on the upside, we could well surpass 11,760 and hit a fresh record high, experts say.
Market is unlikely to either breakout or breakdown from the range of 10,000 on the lower side and 11,000 on the higher side, suggest experts.
Maximum Call open interest (OI) of 32.38 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the November series.
A further rise in volatility is likely to put pressure on the markets. It needs to move below 17 for the market to move higher, says Ashish Chaturmohta of Sanctum Wealth Management.
FIIs raised stake in 96 companies which fell up to 84 percent in 2018.
We believe that, short term trend in the Nifty is still bullish and it is likely to find support around 10,400 odd levels.
The next crucial support for the index is placed at 10,440 and a close below this level could take the index towards 10,132 levels, suggest experts.
Investors’ focus should be on sectors which are ruled by planet ‘Shani’ or ‘Saturn’ which will be the ruling planet for Vikram Samvat 2076, suggest astro gurus.
The Q2FY19 earnings season so far has been in line with the expectations. Strong results declared by IT companies, upbeat numbers from RIL and robust growth reported by the FMCG companies are indicative of sustained demand environment.
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On the lower side, 10,540 - 10,500 are seen as immediate support for the index. We advise traders to continue with a stock-centric approach by adopting a proper exit strategy, says Sameet Chavan of Angel Broking.
Given a strong rebound in the last session to hold above 10,550 levels, the immediate resistance for the index is placed at 10,616 levels followed by 10,690 level and support is seen at 10,450 levels.
Most technical experts are of the view that it is critical for the index to close above 10620 levels for the bulls to regain control while on the downside crucial support for the index is placed at 10500 levels.
The global economy is faced with many challenges emanating from the trade war between the US and its allies.
Nifty has strong support at 10,500-10,460 and resistance at 10,700-10,750 levels, says Sumit Bilgaiyan of Equity99
Dharmesh Shah of ICICIdirect.com does not expect the Nifty to breach its immediate support of 10,200
Corporate earnings will be in focus this week as over 2,350 companies listed on the BSE will be declaring their earnings
Valuation of the broad market continues to be on the higher side and needs to settle as earnings growth is likely to downgrade further, says Vinod Nair of Geojit Financial Services.
If we are in the early part of the expiry be a net Buyer, while towards the end of the expiry be more on the net selling side, says Shubham Agarwal of Quantsapp Private Limited
Bulls should get cautious if Nifty falls below 10,450 followed by 10,380 levels, writes Shabbir Kayyumi of Narnolia Financial Advisors