Markets saw a drastic downwards movement today , the sudden fall triggered stop losses sequentially and market took a while before fresh positions took place. This is the 3rd Monday wherein Nifty has opened with gap down and this looks like fear of unknown that grapples the market every weekend. Last 3 Monday’s saw over 10% spike in VIX ( the fear or volatility index ) on opening itself.
Broader Markets saw relief buying in metal , IT and FMCG sector in closing hours . Pharma has been strong ever since the lockdowns started all over the nation. On hourly charts the market looks very very choppy with only one silver lining , that it has respected the levels created on 1st Feb 2021 after the budget rally.
After HDFC’s results market expects more poor results from other banks and that reflected in the bank nifty index. The banks needs to pull up if nifty has to sustain higher levels as they have over 30% weight on the index.
For April 20 onwards remain stock specific and remain long on index until it breaches 14300 decisively on closing basis.
Personally we are long on Nifty and IT & Metal index.