** PLEASE NOTE THAT ALL LEVELS MENTIONED ARE SPOT **
Good evening! Although DIIs sold far much more than FIIs bought today, the market kept buoyant. This, perhaps, indicates that the distribution level exists around 30000 which also happens to be the index’s 1 wk avg currently. USDINR is oversold and BN’s Stochastics is at an overbought zone with a major divergence in its recent highs. One can safely short at the first sight of weakness, and perhaps the sell-off could snowball into a big one due to the upcoming long weekend. Most signals are pointing south but the day could very well remain rangebound, given that most of the global exchanges are closed on account of Christmas.
In case of a GAP-UP, any weakness around 30000/30100 should be used as a shorting opportunity for targets of 29900-29750-29400. If the index takes support around 29900/29750, one can long for a short bounce.
In case of a GAP-DOWN, one should only look to short if the index trades below 29750 for some time. Below 29750, the index will first test 29400, a breach of which will lead it to test 29100 for a second time. If the index takes support at 29700, one can look to go long for targets mentioned above.
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“It is not the strongest of the species that survives, nor the most intelligent, but the most adaptable to change.” – Charles Darwin
Good evening! Although DIIs sold far much more than FIIs bought today, the market kept buoyant. This, perhaps, indicates that the distribution level exists around 30000 which also happens to be the index’s 1 wk avg currently. USDINR is oversold and BN’s Stochastics is at an overbought zone with a major divergence in its recent highs. One can safely short at the first sight of weakness, and perhaps the sell-off could snowball into a big one due to the upcoming long weekend. Most signals are pointing south but the day could very well remain rangebound, given that most of the global exchanges are closed on account of Christmas.
In case of a GAP-UP, any weakness around 30000/30100 should be used as a shorting opportunity for targets of 29900-29750-29400. If the index takes support around 29900/29750, one can long for a short bounce.
In case of a GAP-DOWN, one should only look to short if the index trades below 29750 for some time. Below 29750, the index will first test 29400, a breach of which will lead it to test 29100 for a second time. If the index takes support at 29700, one can look to go long for targets mentioned above.
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“It is not the strongest of the species that survives, nor the most intelligent, but the most adaptable to change.” – Charles Darwin