Short market report
Both indices closed in red (though nifty posted a green candle) with a long legged dojo indicating some buying pressure. The buying pressure indeed came at the end of the trading session owing to a news of probabilities of talks between Russia and Ukraine which was confirmed by Kremlin. No one saw this coming and bears have been punished without mercy owing to the short covering its started.
The short covering this time affected put buyers more than call writers as the amount of contracts in puts just dropped off a cliff. Those call writers who went in too close being over confident by their conviction have paid the price and Banknifty just managed to get a 700 points rally.
These kind of moves have become daily affair at this point.
CHART
Gap down; both indices closed in red; green doji nifty; red doji banknifty; massive short covering after 3 pm
OC
16500-16700, 35000-35500
PCR
bearish
FII
-4338
DII
3061
FnO Data
long Build up in both indices
RSI
39; 37
ADX
26; 21
Conviction
Bullish
Bias
Bullish
TRADE
sell 35000 PE
Expect a gap up opening tomorrow if we manage not to get any bad news till market opening. Sell 35000 PE and calls above 36600
Recently, the defence sector has got a good traction and one of my good friends has the same view. HAL and BEL getting the focus as of now. These stocks can be considered for the long side with moderate risk
Both indices closed in red (though nifty posted a green candle) with a long legged dojo indicating some buying pressure. The buying pressure indeed came at the end of the trading session owing to a news of probabilities of talks between Russia and Ukraine which was confirmed by Kremlin. No one saw this coming and bears have been punished without mercy owing to the short covering its started.
The short covering this time affected put buyers more than call writers as the amount of contracts in puts just dropped off a cliff. Those call writers who went in too close being over confident by their conviction have paid the price and Banknifty just managed to get a 700 points rally.
These kind of moves have become daily affair at this point.
CHART
Gap down; both indices closed in red; green doji nifty; red doji banknifty; massive short covering after 3 pm
OC
16500-16700, 35000-35500
PCR
bearish
FII
-4338
DII
3061
FnO Data
long Build up in both indices
RSI
39; 37
ADX
26; 21
Conviction
Bullish
Bias
Bullish
TRADE
sell 35000 PE
Expect a gap up opening tomorrow if we manage not to get any bad news till market opening. Sell 35000 PE and calls above 36600
Recently, the defence sector has got a good traction and one of my good friends has the same view. HAL and BEL getting the focus as of now. These stocks can be considered for the long side with moderate risk