India bought 137 tonnes of gold in first quarter of 2024

Sharp fall in crude price and US bond yields reflected the rising concern over fall in future growth.

Yet another round of selloff was witnessed during Friday’s session on the D-Street wherein the benchmark lost over a per cent despite the positive opening. Now in just six trading sessions. the Nifty index has lost over 1,100 points from the peak of 14,753.

The index is now trading near 13,600 mark while the 78.6% Fibonacci retracement of the move from 13,131 to 14,753 stands at 13,479. Also, there has been some concentration in 13,500 strike put options.

Thus, we feel that the next support is at 13,500 and a breach of the same might force the index towards 13,131 in case of any negative surprises from the Budget 2021. On the upside, we expect the index to struggle near 14,000 mark in case of any pullback.

In a best-case scenario, we expect the index to go towards 14,200-14,300 mark which should be used to exit long positions for the time being.

The ideal level to start looking for quality buying would be near to 13,131 zone. Stocks like Kotak Mahindra Bank, Reliance Industries, Tata Motors might offer lucrative risk-reward for the short term traders and investors.

Nifty Bank index has outperformed in the last couple of sessions. All thanks to the private players like Axis Bank and ICICI Bank. On the front of the level, 29,600-29,000 would be a strong support zone for the index in case of further downside.

The area of 31,000-32,000 would be tough one for the bulls to clear where the supply could be imminent. Traders are advised to wait for a decent correction to go fresh long.

Few trading bets for aggressive traders:

Disclaimer: The author is AVP-Technical Research at Anand Rathi Shares and Stock Brokers The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of Money9.com.