Expect volatility due to Futures & Options Expiry: TradingBells
Indian Stocks Markets witnessed small correction on Wednesday, mainly due to concerns about Coronavirus and its impact on economy all over the world. China is still struggling to bring some of its production lines back and the decline in Chinese production will lead to trouble for many companies using Chinese parts for their finished products worldwide. Indian markets have witnessed decline and investors are looking for reducing their positions.
Stock Market outlook by Santosh Meena from TradingBells follows...
The mayhem in equity markets is continued around the globe due to rising worries of Coronavirus. There is a vertical fall in equity markets as investors are coming out of risky assets where US 10-Yr Treasury yield is falling because of the demand for a safe haven. Uncertainty regarding coronavirus will continue to impact the equity markets while the February series expiry may cause volatility in tomorrow's trading session.
Technically, Nifty ends just below its 200-DMA of 11684 while Banknifty manages to hold its 200-DMA of 30178. It would be important to see tomorrow's market behavior because if Nifty and Banknifty trades below their 200-DMA then major downside will be open where Nifty may head towards 11200-11100 zone while 11500 could be psychological support. In the upside, 11800 will be an immediate hurdle at any pullback while 100-DMA of 11965 will be a major hurdle at any meaningful recovery.