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Below is Closing Market Quote by Mr. Santosh Meena, Head of Research, Swastika Investmart Ltd

The Indian equity market witnessed a sharp fall in today's trading session due to fresh COVID worries. Healthcare sector came into limelight while covid averse sectors were under pain today. However, when Dow futures were trading higher today after yesterday's gain, we overreacted. While institutional flows in the cash market are declining, F&O players are uneasy following today's rise in the VIX.

Technically, following a strong start, Nifty rejected the 9-DMA and saw a rapid decline; however, it was able to hold the 50-DMA of 18144. On the downside, the area between 18133 and 18080 represents a significant demand zone. As long as Nifty trades above 18080, the general bullish texture will hold, but below 18080, we can anticipate a short-term trend reversal. The 20-DMA of 18550 is a significant barrier on the upside, while 18440 is an immediate barrier. To reverse the bearish scenario, Nifty needs to break through this level. Bulls will anticipate a short covering move since the put/call ratio is oversold.

Banknifty has slipped below the 20-DMA, where 42200-42000 is an immediate and critical support zone; below this, we can expect any major weakness, otherwise, it may bounce back again. On the upside, the 20-DMA of 43300 will act as a hurdle now.

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