Short Market Report
FIIs controlled Bank Nifty with just one stock HDFC bank. Probably they will sell more tomorrow before results and then they will take long positions as per my thinking.
Now, thinking and reality is different. 20 Jan Expiry data shows 38500 call writer is very strong but that's not the only thing. They are playing 38500 short straddle... Meaning call and put are being sold at the same strike. Same is the case with 18300 strike in nifty. Indication is some range bound action.
Charts have something different to say. A dragon fly Doji in nifty after such an up move is showing bulls are still in control but question is how long that will last in the face of Bank Nifty forming a decisive red candle today. Also, dojis usually indicate a reversal is coming.
In short, things are messy after this huge rally. Implications are bearish but with a limited downside as of now. 17300 was my previous idea where nifty might come.. I would like to update that with a range of 17300-17600. In case of bank nifty 36400-37000.
Conviction neutral
Bias bearish especially for bank nifty
FIIs controlled Bank Nifty with just one stock HDFC bank. Probably they will sell more tomorrow before results and then they will take long positions as per my thinking.
Now, thinking and reality is different. 20 Jan Expiry data shows 38500 call writer is very strong but that's not the only thing. They are playing 38500 short straddle... Meaning call and put are being sold at the same strike. Same is the case with 18300 strike in nifty. Indication is some range bound action.
Charts have something different to say. A dragon fly Doji in nifty after such an up move is showing bulls are still in control but question is how long that will last in the face of Bank Nifty forming a decisive red candle today. Also, dojis usually indicate a reversal is coming.
In short, things are messy after this huge rally. Implications are bearish but with a limited downside as of now. 17300 was my previous idea where nifty might come.. I would like to update that with a range of 17300-17600. In case of bank nifty 36400-37000.
Conviction neutral
Bias bearish especially for bank nifty