Nifty Bank IndexShort
Short Market Report 16.02.22
Short Market Report
Super volatile day like yesterday reacting to news every hour. If you got the direction right and continued to change your positions or scalping, then only you must have been in profits. Every data and chart is giving confusing signals owing to this volatility.
Nifty and bank nifty dropped significantly in the last hour and formed a thick red candle. Nifty is only above 200 DEMA and trading below all other major moving averages. Bank nifty dropped below 21 DEMA and tested the short term channel bottom. Nifty almost did the same thing with the recent long term channel bottom. Bank nifty tested 100 DEMA at 37774 and found a strong support.
Individual banking stocks don't look strong.
Option data is not being of any help as it keeps on changing every hour. 17000 still looks to be a good support whereas 17500-17600 seems to be the resistance zone as per EOD data. Bank nifty is having a similar pattern with 37500 being the support and 38500 being resistance. I would like to remind yo again that this data is of almost no value owing to the volatility. PCR data suggests bearishness in both the indices.
What to expect tomorrow? Markets likely to trade with bearish bias except for any good news on the Russia - Ukraine situation. if the indices break down their respective channels and continue to trade below them, more bearishness can be expected. Also, a gap down opening may be expected.
What to trade tomorrow? Put spreads may be a good idea but use your own discretion to trade. 38500 is unlikely to be broken without any good news so you can short 38500 CE but premium is just 40 bucks. There is a high probability that bank nifty will expire below 38000 so you can short 38000 CE with moderate risk.
Bias and Conviction bearish
Super volatile day like yesterday reacting to news every hour. If you got the direction right and continued to change your positions or scalping, then only you must have been in profits. Every data and chart is giving confusing signals owing to this volatility.
Nifty and bank nifty dropped significantly in the last hour and formed a thick red candle. Nifty is only above 200 DEMA and trading below all other major moving averages. Bank nifty dropped below 21 DEMA and tested the short term channel bottom. Nifty almost did the same thing with the recent long term channel bottom. Bank nifty tested 100 DEMA at 37774 and found a strong support.
Individual banking stocks don't look strong.
Option data is not being of any help as it keeps on changing every hour. 17000 still looks to be a good support whereas 17500-17600 seems to be the resistance zone as per EOD data. Bank nifty is having a similar pattern with 37500 being the support and 38500 being resistance. I would like to remind yo again that this data is of almost no value owing to the volatility. PCR data suggests bearishness in both the indices.
What to expect tomorrow? Markets likely to trade with bearish bias except for any good news on the Russia - Ukraine situation. if the indices break down their respective channels and continue to trade below them, more bearishness can be expected. Also, a gap down opening may be expected.
What to trade tomorrow? Put spreads may be a good idea but use your own discretion to trade. 38500 is unlikely to be broken without any good news so you can short 38500 CE but premium is just 40 bucks. There is a high probability that bank nifty will expire below 38000 so you can short 38000 CE with moderate risk.
Bias and Conviction bearish
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