“If Nifty continues to correct or stays below say 22,000 mark on closing basis, there are chances that we may see further correction at least towards 21,400, 21,500 zone so that is very much possible for now,” says Sneha Seth, Angel One.

22,000 broken on Nifty 50, help us understand what is next?
Sneha Seth: Understanding is little bit difficult at this point in time but yes, if we look at the market, the correction what we have seen in last two session and especially IVs, it is above 20, after a long time we are seeing IV surging in a single day to 20 from 13, so that is not giving us the comfort, but at this point in time I would say it is the time wherein traders need to be very light, be very selective, in fact they should avoid any aggressive bets in this kind of a market.

If Nifty continues to correct or stays below say 22,000 mark on closing basis, there are chances that we may see further correction at least towards 21,400, 21,500 zone so that is very much possible for now.

So, at present stay light in index. Banking index which was supporting or which was still managing to stay at the high level has also taken a beating today. So, looking at the overall market condition, IVs, FIIs wherein they were buying initially and now we are seeing in April series they have been adding short positions in index futures wherein the long-shot ratio was around 40 which has come back to 29 on Friday and maybe today we may see this ratio coming down further from here.

So, at this point in time stay light in index, it is a good opportunity for investors wherein for a long-term perspective if someone wants to go and take a fresh bets, then there are many counters which are trading at a 20-30% cut from the higher level so that should be the focus, but yes, for a short-term trader stay light, avoid trading.

You mentioned an interesting point about Nifty Bank. I was coming to you for that. Nifty Bank that has been outperforming and that has actually lended support to the market, even that has succumbed to selling pressure today. But going ahead should you see some bit of a breather or a reversal coming in, is Nifty Banks likely to lead and what are the levels to watch out on Nifty Bank then?
Sneha Seth: Banking index I believe the support zone is around 48,000 so that is a major support zone which it has been respecting so far and for now I believe any up move at least above 50,700, 50,800 would be interesting, then only we may see some buying coming in and at least an up move beyond that 52,000 mark that could be very interesting, but for now there are chances that banking index can consolidate wherein on the lower side I believe 48,000 should be acting as a support, on the higher side there would be a resistance around 50,500, so that would be the range for banking index.
In case of any follow-up buying above the resistance zone, that would be very interesting and that would support Nifty as well.Help us understand that which are the stocks that you are eyeing at this point in time and are you looking for some fresh shots at this point in time or would you like to buy some of the dips?
Sneha Seth: So, I would be very selective, as I said that you need to be very selective and trade very light for now, I would select one stock which is a buy again, that would be Godrej Consumer Product. This counter has given a strong move.
Despite such a correction in market it has been holding on, trading in a green today, that is the best thing about this counter for now.

Looking at the chart structure, there is a resistance placed around 1180 zone, but looking at the chart structure, the volumes what we have seen recently there are chances this counter can surpass those level, so I would suggest going ahead and doing a long position in this counter, keep a strict stop loss around 1124 and the target expected will be around 1220.