Indian markets opened very strong on Monday after Friday’s carnage but the gains couldn’t be sustained. The market opened very strong and NIFTY was about to cross the first resistance levels but news about some cases of coronavirus infection from India led to selling. Global markets have recovered to a certain extent as investors bought at lower levels. Medium and long term trend is still positive but volatility in the short term can lead to major losses for traders. Traders should exercise caution or keep strict stop loss.

A market review by Mr. Santosh Meena, Senior Analyst, TradingBells follows….

The market witnessed a sharp sell-off from higher levels after a first-half rally which was on the back of pullback rally in Dow future. The pullback was weak towards 11400 and news of new Coronavirus cases in India led this sharp fall while the global markets were trading into the green.

Technically, Nifty bounced back from major support zone of 11200-11100 but failed to sustain at higher levels while Nifty manages to hold 11100 on a closing basis.

Tomorrow would be important day post today's panic sell-off because generally market tries to bounce back after a panic sell-off where FIIs net long position in F&O market at historic low which may cause a short-covering rally but there is a need for smart pullback in global market otherwise psychological level of 11000 is under threat where 10700 would be the next important support level. In the upside 11450/11700 are important resistance levels.