Most significant sell-off in Market, Actual Reason and market outlook

Thursday in Market we saw a big Sell of and Sensex fell by 1066.3 points and settled around 39728.41, while Nifty plunged by 290.7 points and closed at 11680.35. All sectoral indices were in red, with Bank, Fin Services and IT sectors leading the downfall. India VIX, which measures volatility as well as fear in the Market, also increased by over 9%.

All Sectrolal Indices down in between 1% to 4.3%.

Actual Reason for this Sell-Off

Market already in the overbought zone from last few days almost 11 trading sessions it manages to close in green so a big sell off was on cards.

Wednesday charts turn extremely weak for bulls, but they somehow made a false breakout on the afternoon session.

The real weakness we have seen from Thursday morning itself although some stocks tried to go up initially as time passes nifty fall heavily due to its weak chart and all stocks then slowly starts to participate in the sell-off later panic selling from 2 pm.

All 3 to 4 days gains wiped out in a single day.

Stocks That drag Nifty on Thursday

Bajajfinance,Techm,ICICI Bank,Indusind Bank

Almost all Nifty stocks went into red zone Except a few Like Asian Paints, Jsw Steel.

Mindtree Deliver a Q2 profit up 88% likely to gap up.

Intraday Trading Prediction for Thursday

We are expecting nifty to Remains sell on rising despite SGX showing 70 points gap up.

All should not fall in the trap of this Gap up.

The sell-off not yet over, and if you go long, it will ruin full capital again.

It is also advisable not to make any over position while trading.

Stocks to Buy Sell Today

Although it is  advisable not to take any longs as per charts

Buy Stocks

JW STEEL

PIDILITIND

ASIAN PAINT

LUPIN

TITAN

SELL STOCKS

FEDERAL BANK

HINDALCO

TATAMOTORS

RELIANCE

ITC

HCLTECH

ICICIBANK

SBIN

INFY

Read our previous post of market update

Securities in Ban For Trade Date 16-OCT-2020:

1. ADANIENT

2. BHEL

3. CANBK

4. ESCORTS

5. IBULHSGFIN

6. IDEA

7. JINDALSTEL

8. MINDTREE

9. PNB

10. PVR

11. SAIL

Have a Profitable day.

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