Today was a day of further correction in the market. Nifty and Bank Nifty both fell over 1%. While select high beta sectors did relatively well today, key sectors like Banking and Finance still lagged. Top performing sectors for the day were Metal, Auto, Infrastructure and FMCG whereas worst performing sectors were Consumption, Information Technology, Banking, Pharma and Finance. For the series, Pharma, IT, FMCG and Consumption continue to remain in control. Volatility in the market has shot up and intraday movements are no longer reliable. In the next 20 sessions, traders will encounter more gap up/gap down sessions rather than sustained low volatile intraday sessions. Both Nifty and Bank Nifty had formed lows on 25th and it seems today’s session was more in line of those low’s being tested. Its difficult to say whether recent lows will hold or not, but odds are certainly not in favor of low’s holding. Selling pressure is still high and there is no significant support emerging in the market. Since a lot depends on global factors, market will follow news flow emerging from China and U.S. fed meet. Fed meet outcome is more or less known given that it will be difficult for Fed to raise rates under such global market conditions. Nevertheless, volatility around the same will remain high. Tomorrow is expiry session and today rollover towards short side was visible. Major adjustment is going to happen tomorrow. Reference level for Bank Nifty is 17900. Reference level for Nifty is 8160.
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