Sensex (33538) / Nifty (9902)

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Sensex (33538) / Nifty (9902)

On the weekly options expiry day, Nifty started trading on a flat note. But the indices crept lower throughout the day and ended tad above 9900, registering a loss of over 200 points.

After a minor pullback in the first half an hour, the indices corrected gradually during the day towards the 10000 mark. All eyes were on the Supreme Court hearing on the AGR dues around noon in which the honorable court adjourned hearing to 18th June. The indices did not see any swings immediately, but it followed the global cues which were trading in deep cuts and as a result, Nifty breached the 10000 mark and corrected further to end the day around 9900. In last few sessions, we had seen that any dip in the range of 9900-10000 was being bought into. However, the market breadth was negative yesterday and broader markets witnessed sell-off thus jeopardizing the support of 9900. With the overnight fall in the global markets, SGX Nifty is hinting towards a big gap down opening towards 9600 - 9700 levels. The follow-up move post the gap down will be crucial and volatility is likely to increase. Hence, traders are advised to keep positions light and wait for further developments.