Market intellectuals may attribute yesterday's crash to anything of the following reasons:
- Fresh tensions in Ladakh
- New Margin Trading rules kicking in from today
- End of the Moratorium period yesterday
- Or the massive GDP contraction (announced post closing yesterday).
But the writing on the charts was clear on Friday itself - closing above 39580/11681 would require a massive Bull effort which would be nearly impossible given the already sharp run-up.That is the reason we brought NIFTY September Puts as a BTST trade on Friday itself.
The level of 39015 (11515) was a part of the trendline which was supporting the markets from ~20th August. Having broken that trendline support, the markets are in for further weakness before stabilizing.
Continue to remain short on the NIFTY, while taking a stock-specific view.
Do not get fooled or carried away but any bounce/rise. The resumption of the uptrend is a few days/weeks away.