Short Market Report 08.02.22
Short Market Report
Red candle and a close above yesterday's low is what happened in both indices. Indices took support at their respective channel bottoms and there was good buying pressure after the first few hours of trade. Volatility was too much to handle even for seasoned traders as bank nifty moved 400-800 points in either direction. I was thinking if the channel bottoms would hold and they did. So tomorrow you can expect an up move? No, things are not that easy.
There is long build up in Nifty and short build up in bank nifty. That makes things interesting. Trust me when I say some bears are hiding in plain sight behind the second half up move.
What to expect tomorrow? Looking at the way OI has changed in 38000 CE (only short build up and long unwinding), at some point tomorrow we can expect huge down move. Nifty can rather test 17300+ zones and if does not sustain can go down again. Given the buying pressure today, we can expect to close in green. But that's not a high probability.
Trading Ideas: 17500 CE and 38500 CE shorting are safest bets.
Nifty: Conviction Neutral Bias Bullish
Bank Nifty: Conviction bearish; Bias Neutral
Red candle and a close above yesterday's low is what happened in both indices. Indices took support at their respective channel bottoms and there was good buying pressure after the first few hours of trade. Volatility was too much to handle even for seasoned traders as bank nifty moved 400-800 points in either direction. I was thinking if the channel bottoms would hold and they did. So tomorrow you can expect an up move? No, things are not that easy.
There is long build up in Nifty and short build up in bank nifty. That makes things interesting. Trust me when I say some bears are hiding in plain sight behind the second half up move.
What to expect tomorrow? Looking at the way OI has changed in 38000 CE (only short build up and long unwinding), at some point tomorrow we can expect huge down move. Nifty can rather test 17300+ zones and if does not sustain can go down again. Given the buying pressure today, we can expect to close in green. But that's not a high probability.
Trading Ideas: 17500 CE and 38500 CE shorting are safest bets.
Nifty: Conviction Neutral Bias Bullish
Bank Nifty: Conviction bearish; Bias Neutral
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