Another proof that if something is so obvious and known to all then probability is higher that it won’t work in the market. Same thing happened in NIFTY yesterday. Knowing that Fed will not hike and will be dovish again, traders bought NIFTY yesterday in a hope that the history will repeat itself and they will be able to either hold or offload on the big bounce yesterday. But unfortunately that didn’t happen and today we are seeing the liquidation of those positions.
S&P 500( USA market Index ) is showing some weakness and that might prevent NIFTY from getting the poise as of now. We will get more clues as soon as European markets open in next couple of hours. Currently the trade we are looking for is either selling a bounce or buying the test of 8000. Previous lows were around 8070 / 8080, that might prevent the straight slide down. Let’s see how price action unfolds.