Pre Market Updates: Monday September 24
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.
