Trade Plan-Time for pullback, but Nifty may get sold off on higher side.

Despite some intraday swings that Nifty witnessed, volatility index India VIX eased a bit as it declined 0.14 percent to 43.60.

Any up-move from now on will remain limited in extent, and the market will continue to exhibit a bearish bias over the immediate short term.

Derivatives data showed long unwinding from higher levels as declines have come with a significant amount of reduction in open interest in Nifty futures.

Nifty is likely to see the 9,245 and 9,335 levels act as the overhead resistance in Wednesday’s session, while supports will come in at 9,160 and 9,065 levels.
The upside may remain capped, but any move on the downside is likely to widen the trading range.

Given the over 650-point decline in Nifty in two days, there may be a mild technical pullback.

However, such pullbacks will continue to be shortlived and limited in their extent.

Any move on the upside will make some room for more selloff from higher levels. Some amount of volatility may make its incremental presence felt. It is recommended to avoid making purchases on any pullback and approach the market with a great amount of caution.

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