Short Market Report
It has been a tormenting few days since the price action (charts) and other data points were giving conflicting impressions. Add to that the undying positive attitude in the market. And in one candle we take out all the gains since 12 Jan. I have been vocal about the fact that a retracement is long overdue and today marked the start of it.
FIIs have continued their selling and DIIs have sold their highest in months. They showed everyone that they are market makers and we are traders. Most of the traders lost morning gains. Call writers have shifted from 18500 to 18300. That's not much of importance. Important stuff is 18000 put holds maximum OI followed by 17500. So in case we breach 18000, expect a 500 points fall. Bank nifty looks more stable till now as 38000 put writers are still strong which will act as a major support. 38500 call writers are back in action though so not expecting much of upside.
This selling was fueled by a lot of factors like bond yields, European markets, our hon'ble Finance Minister talking about politics and not economics, etc.
What goes up must come down and everything needs some rest. So it is simple that market will likely continue this retracement. Question is up to what point.
In case of nifty two levels are crucial
17609
17380
In case of Bank Nifty
38707
36437
These are the points where markets might come down to and reverse from there.
So in short, short the damn thing but wait for a bounce before you do that. Indices are in oversold territory so be cautious. And don't be scared with huge volatility. Expect huge volatility and you won't be surprised.
Nifty
Bias Bearish
Conviction Bearish
Bank Nifty
Bias Neutral
Conviction Bearish
Trading ideas (will depend on market opening)
In case of a flat opening, 18000 PE and 38200 PE can be taken. In case of gap down... Don't trade till markets stabilize.
It has been a tormenting few days since the price action (charts) and other data points were giving conflicting impressions. Add to that the undying positive attitude in the market. And in one candle we take out all the gains since 12 Jan. I have been vocal about the fact that a retracement is long overdue and today marked the start of it.
FIIs have continued their selling and DIIs have sold their highest in months. They showed everyone that they are market makers and we are traders. Most of the traders lost morning gains. Call writers have shifted from 18500 to 18300. That's not much of importance. Important stuff is 18000 put holds maximum OI followed by 17500. So in case we breach 18000, expect a 500 points fall. Bank nifty looks more stable till now as 38000 put writers are still strong which will act as a major support. 38500 call writers are back in action though so not expecting much of upside.
This selling was fueled by a lot of factors like bond yields, European markets, our hon'ble Finance Minister talking about politics and not economics, etc.
What goes up must come down and everything needs some rest. So it is simple that market will likely continue this retracement. Question is up to what point.
In case of nifty two levels are crucial
17609
17380
In case of Bank Nifty
38707
36437
These are the points where markets might come down to and reverse from there.
So in short, short the damn thing but wait for a bounce before you do that. Indices are in oversold territory so be cautious. And don't be scared with huge volatility. Expect huge volatility and you won't be surprised.
Nifty
Bias Bearish
Conviction Bearish
Bank Nifty
Bias Neutral
Conviction Bearish
Trading ideas (will depend on market opening)
In case of a flat opening, 18000 PE and 38200 PE can be taken. In case of gap down... Don't trade till markets stabilize.
