Market pre-opening for July 17, 2018: Nifty likely to remain volatile in short term owing to global trade concerns

Monday blues hit D-Street! The S&P BSE Sensex closed 217 points lower on Monday while Nifty breached its crucial support placed at 11,000 on the downside.

Mid and smallcap stocks bleed the most. Both indices saw deep cuts of over 2 percent in trade today. Some experts believe that money is moving from the mid & smallcap space to largecaps which contributed to the rally seen in markets in July. Rise in margin requirement is also hampering the investor sentiment as well as liquidity. 

A market which hit a record high on Friday saw over 400 points hitting fresh 52-weeks low on the BSE and 300 stocks on the NSE on Monday which is not a healthy sign for the bulls.

Market is likely to remain volatile in the short term owing to global trade concerns. 

Any major declines towards key support levels should be used as an opportunity to get into quality names in the consumption and financials space.