Markets falls due to selling in Banking stocks: Angel Broking
Market Wrap-up by Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking):
"In line with the negative global cues, the SGX Nifty hinted at a gap down opening for our markets and hence, we started the week on a negative note below 8400. The index tried to recover from the lows in the initial couple of hours, but it witnessed selling pressure around the 8600 mark and then remained under pressure for rest of the day to conclude with a cut of more than four percent.
During last week, we had seen a pullback move in Nifty from the lower levels of around 7500 to surpass the 9000 mark on Friday. However, the global peers again witnessed some selling pressure as there was not much relief with regards to the COVID-19 cases across the globe. As mentioned in our earlier reports, the markets are now not reacting to any other news as everyone is now more concerned about the developments with regards to this disease which has a significant impact on the human life and the economies as well. Hence, our markets are likely to continue to trade with higher volatility in the near term. The Banking and the Financial services stocks were the most under-performing names in today's session due to which the Bank Nifty index corrected by more than 6 percent.
Technically, 8100-8000 is the important support zone to watch out for the near term. If the index breaches the mentioned support zone then we could see a continuation of the downtrend in the broader markets. On the flipside, 8600 and 8850 will now be be the immediate resistances on pullback moves. During such volatile times, traders are advised to avoid trading aggressively and trade with a proper risk management and an exit strategy."