The Nifty50 broke below its crucial support level of 9,900 in morning trade on Monday but stocks which were under the ban period for today witnessed huge selloff.
On the weekly scale, it formed a Bearish Engulfing pattern on Friday, as it snapped the entire gains of last week and closed below previous week’s low levels. Investors are advised not to create long positions on dips while for short positions maintain a strict stop loss above 10,179.
Stocks like Infibeam slipped up to 39 percent in the trade before recouping some of the losses while, India Cements slipped 5 percent, Indo Count Industries dropped 6 percent in mid-morning trade.
A.K.Prabhakar, Head -Research at IDBI Capital told Moneycontrol that the selloff could be related to traders cutting their leverage bets in these stocks.
Security in ban period for the next trade date under the F&O segment includes companies in which the security has crossed 95% of the market-wide position limit.
As many as 11 companies were banned for trading on Monday which includes names like BEML, DHFL, DLF, HDIL, Indiabulls Real Estate, Indo Count Industries, India Cements, Infibeam, JSW Energy, Reliance Communications, and Wockhardt.
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