Hot Stocks: Deploy some capital in market if Nifty trades in 9,500–9,000 range

Without a doubt, this has been the worst week so far for the domestic markets, as the benchmarks witnessed their steepest fall ever in absolute terms.

The Nifty spot has collapsed more than 12 percent so far during the week to trade near 9,500-mark. On the other hand, the Nifty Bank index has lost around 14 percent to breach the 24,000-mark.

Now at this juncture, the technical supports are not working since the fall is driven primarily by the overall sentiment. We are not witnessing any buying interest whatsoever even at the strongest support level.

Nonetheless, considering the price structure of the Nifty spot, we observe that the index is hovering near the 9,500 mark, which is the 161.8 percent Fibonacci retracement (golden ratio) of the move from 10,640 to 12,430.

Further, at the 9,000-mark, there is the placement of a long-term rising trend line formed by joining the significant swing lows of 2,539 (March 2009) and 5,119 (August 2013).