Market Reversal Risk: Nifty Dips, Mid/Small Caps & Indigo Under Pressure

• Market experienced a sharp decline, attributed to negative Indigo sentiment, FII selling, and weak mid/small-cap performance.
• Risk of a major trend reversal is high, particularly for mid-cap and small-cap stocks, where recovery is expected to be slow.
• Nifty closed below its 20-Dema; further decline is possible if it settles below 25,891, with 25,768 being a critical support level.
• Indigo faces valuation de-rating risk; large investors may buy on corrections, but retail investors are advised to stay away for now.
• Today's trading strategy suggests watching market movement for the first hour, avoiding shorting after a gap-down, and trading low.

Why It Matters: It warns investors of market instability and provides strategies for navigating current volatility.