We are in the continuation phase of an up move where both indices had gap up openings, covered the gap on the downside, and then went on to rally owing to massive short covering. It was news driven of course as Ukraine decided not to go along with NATO. No bad news and some small good news. But the actual driving factor was the retail traders.
FIIs sold 4818 cr and DIIs bought 3275 cr. Hence to instiutions have net sell status. There is no other way to explain this up move rather than the retail traders taking control of the market once again. The one stock responsible was Reliance backed up by banking stocks. Auto sector continues to be weak.
Movement was predictable once nifty was trying to break 16200 (though short covering had started some time back and mostly 16100 CE was the main target by the bulls)and the level was broken after the participation of banknifty.
Future data: Long build up in both indices
Option Data: 16500 and 34000 will major resistance in nifty and banknifty respectively
Hourly charts are very bullish. Banknifty went back inside recent long term channel
Crude oil prices falling.
What to expect tomorrow? Dow jones is 770 points up and SGX nifty suggests that 16500 will be decisively broken.
Bias Bullish
Conviction Bullish
What to trade? In absence of any bad news expiry will happen above 16500 and 33500. So both these puts can be sold. Pointing out the exact strike price for a call sell is difficult right now as tomorrow’s market structure would help to decide that.
FIIs sold 4818 cr and DIIs bought 3275 cr. Hence to instiutions have net sell status. There is no other way to explain this up move rather than the retail traders taking control of the market once again. The one stock responsible was Reliance backed up by banking stocks. Auto sector continues to be weak.
Movement was predictable once nifty was trying to break 16200 (though short covering had started some time back and mostly 16100 CE was the main target by the bulls)and the level was broken after the participation of banknifty.
Future data: Long build up in both indices
Option Data: 16500 and 34000 will major resistance in nifty and banknifty respectively
Hourly charts are very bullish. Banknifty went back inside recent long term channel
Crude oil prices falling.
What to expect tomorrow? Dow jones is 770 points up and SGX nifty suggests that 16500 will be decisively broken.
Bias Bullish
Conviction Bullish
What to trade? In absence of any bad news expiry will happen above 16500 and 33500. So both these puts can be sold. Pointing out the exact strike price for a call sell is difficult right now as tomorrow’s market structure would help to decide that.