Nifty futures experienced heavy selling today as FII became net sellers for the day. Major sectors that experienced their onslaught were PSU Banks, Metals, and Auto. Each of these sectors fell by 4.04%,3.82%, and 2.28% respectively.
The major Nifty 50 losers were Adani stocks (Adani Ports and Adani Ent.) losing 5.76% and 5.35% respectively.
Nifty futures experienced huge volumes today, with the daily volume touching more than 10M (highest single-day volume since April 2023). With today’s fall, supported by huge daily volumes (supported by huge negative delta), the trend seems to have turned bearish in the short term (1-2 weeks). Immediate support seems to be at 21050-20975 (previous demand zone) but the momentum and volume experienced by Nifty today, the support is expected to get breached and Nifty may move towards the next demand zone of around 20750-20600.
Traders may experience two scenarios in the forthcoming days in Nifty:
Scenario 1(Pullback and fall-less risky): Nifty may move towards 21300-350(major resistance as huge volume were traded at those levels) and may start to fall towards the immediate support of 21050-20975.
Scenario 2(Breakout-risky): Nifty may continue its downward journey without any pullback and move towards the demand zones. This scenario seems risky as traders may experience difficulty in placing their stop-losses.