Nifty expected to open near flat to positive zone post an unexpected selloff yesterday.
Watch for a move above 11852 and 24495 by end of week for Nifty and Bank Nifty for a break above 12025 and 25233.
U.S. stocks tumbled on Monday in thin trade, with the S&P 500 posting its biggest daily decline in four weeks, as soaring coronavirus cases and uncertainty about a fiscal relief bill in Washington dimmed the outlook for the U.S. economic recovery.
Markets had a cut of anywhere between 1.64% to 2.29% as risk off trade gained momentum.
US 10 year fell near 0.8, dollar index rose above 93, cboe vix moved into elevated levels near 32.
Crude futures continued to see some more selloff with WTI falling near 38 and Brent near 40.
As the fears of second wave of Covid 19 grows, the verdict date for US presidential elections draw closer and hopes of a stimulus in US before the election fade, there may be a delay in the much awaited breakout above the key resistance points of 12025 and 25233 for Nifty and Bank Nifty by few more days (may be post election as against our expectations just before elections).
The only joker in the pack is the new lockdown measures that may be taken in case there is a deeper second wave of covid 19, in that case markets may give back some of the recent gains. The best way to play next few days is to limit short term positioning to manageable levels and wait for a clearer move above the resistance zones.
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By: via @AlliesFin Serve Stock Market
