Nifty Likely To Trade with Negative Bias 0 1665

Pre Market Updates: Monday September 24
Nifty levels

What actually happened on Friday?

  • A debt fund of DSP Mutual Fund named DSP CREDIT RISK FUND was holding IL&FS commercial Paper (CP).
  • This paper were rated AAA.
  • But last week IL&FS made an interest default hence its rating went down to D.
  • Redemption pressure came to this fund.
  • Therefore DSP MF sold AAA rated 9.1% paper of DHFL as they needed big fund and hence this quality paper was sold at a steep discount to meet the redemptions.
  • This led to fear of all NBFCs specially HFC’s will have big problem and it triggered panic-selling in all the NBFCs.
  • Then followed by banks stocks and YES Bank was already in bad news.

Nifty May Trade With Negative Bias

  • Asian stocks declines after China canceled upcoming tariff talks with the United States
  • SGX Nifty indicates negative opening for our markets
  • Nifty likely to consolidate with a negative bias after such a big fall on Friday.
  • We can expect short covering rally at anytime.
  • Huge call writing was witnessed in 11200CE strike indicates as strong resistance as of now.
  • 11000 will act as a good support.

 Nifty50 Technical Analysis: Hammer Candlestick Chart Pattern

  • Nifty50 Formed Weekly Hammer structure, Weekly Three outside down, Oversold by Slow Stochatic and Oversold by RSI
  • As per the ‘Dow Theory’ only a move in the opposite direction of this structure will be considered as a pullback or a retracement.
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